ISM Services Index

The ISM Services Index, also known as the Non-Manufacturing Index or NMI, is a monthly survey of service-sector companies in the United States conducted by the Institute for Supply Management (ISM). The survey collects data on various aspects of the service sector, including business activity, new orders, employment, supplier deliveries, inventories, prices, and imports/exports.

The index is based on a diffusion index methodology, where values above 50 indicate expansion in the service sector, while values below 50 indicate contraction. The higher the index value above 50, the greater the rate of expansion, and vice versa.

The ISM Services Index is considered a leading economic indicator as it provides insights into the health of the service sector and broader economic conditions. The service sector makes up a significant portion of the U.S. economy, including industries such as retail, healthcare, finance, and transportation. A higher index value suggests strong economic activity in the service sector, which can contribute to overall economic growth, while a lower value indicates weak economic conditions. Additionally, the survey provides information on the challenges and opportunities facing service-sector companies, such as changes in input costs, consumer demand, and business sentiment. This information can help businesses and policymakers make informed decisions about their operations and policies.