| Definition:
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The NAPM Index provides a comprehensive view of the manufacturing sector. The composite index is derived from a survey of 300 purchasing managers in 20 different industries nationwide. The survey asks questions regarding production orders, commodity prices, inventories, vendor performance, and employment. The purchasing managers are asked to rate the categories as up, down, or unchanged.
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| Meaning:
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Analysts and investors like the fact that the data is timely. The index is watched closely for unexpected changes or turning points as an indication of the overall economy's ups and downs. An index reading over 50 indicates the sector is expanding. A reading below 50 indicates the sector is contracting and a reading below 44.5 indicates the sector and the overall economy are contracting (portends of a possible recession).
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| Weight:
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**
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| Source:
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National Association of Purchasing Managers
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| Availability:
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First business day of the month
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| Frequency:
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Monthly
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| Coverage:
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Data are for the previous Month (Data for May are released in June)
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| Volatility:
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Moderate
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Impact on the Markets:
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| Interest Rates:
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ISM  =
Interest Rates
ISM  = Interest Rates
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| Fixed-income:
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ISM =
Bond Market
ISM = Bond Market
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| Equities:
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ISM =
Stock Market
ISM = Stock Market
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| Dollar:
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ISM = Uncertain
ISM = Uncertain
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| More Information:
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National Association of Purchasing Managers
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