The ISM Services PMI (Services Purchasing Managers' Index), formerly known as the ISM Non-Manufacturing Index, is an economic indicator that provides a detailed look at the performance and economic condition of the services sector in the United States. It is compiled and released by the Institute for Supply Management (ISM), a nonprofit organization. Key points about the ISM Services PMI:
- It is based on surveys of purchasing managers from over 400 service-based companies across more than 15 industries such as finance, healthcare, retail, transportation, and more.
- The index measures various aspects of the services sector including business activity, new orders, employment, prices, and inventories.
- A reading above 50 indicates economic expansion in the services sector, while a reading below 50 signals contraction.
- The report is released monthly, typically on the third business day of each month at 10:00 a.m. ET.
- It serves as a leading economic indicator, giving insight into the overall health and trends of the U.S. economy from a non-manufacturing perspective.
- The data is useful for economists, investors, business leaders, and government officials to assess economic growth and inflation influences within the services sector.
The ISM Services PMI can guide decisions on investments and economic forecasts by providing early signals about changes in the economic environment in sectors like finance, insurance, real estate, healthcare, and others. In summary, the ISM Services PMI is a vital monthly report that reflects the economic activity and conditions of the services industry in the U.S. economy, helping stakeholders understand whether this significant sector is expanding or contracting.
