Institute for Supply Management Indexes
THE PURCHASING MANAGERS’ INDEX (PMI) garners more attention than any other economic release except the monthly Employment Situation report (see Chapter 3). Markets move considerably on its readings, and rumor has it that the index is former Federal Reserve chairman Alan Greenspan’s “desert island statistic”—that is, if he were stranded on an island and needed to conduct policy with respect to only one economic in-needed to conduct policy with respect to only one economic indicator, this would be it.
The purchasing managers’ index is the headline index of the Manufacturing ISM Report on Business. This report is created by the Tempe, Arizona-based Institute for Supply Management (ISM), a not-for-profit ...