ISM Mfg Index / Futures Broker

  Released on 3/1/2011 10:00:00 AM For Feb, 2011  

 Market Consensus Before Announcement
The composite index from the ISM manufacturing survey jumped 2.3 points to a rare plus 60 reading at 60.8 for the highest reading since May 2004 when the index registered 61.4 percent. The new orders index led the gain, jumping 5.8 points to 67.8-a reading that points to likely strength ahead for the composite index. The other four components of the composite also showed month-to-month acceleration including employment which is also in rare territory at 61.7 for a nearly two-point gain and the first plus-60 reading in seven years.

Definition
The Institute for Supply Management surveys more than 300 manufacturing firms on employment, production, new orders, supplier deliveries, and inventories. A composite diffusion index of national manufacturing conditions is constructed, where readings above (below) 50 percent indicate an expanding (contracting) factory sector. Export orders, import orders, backlog orders and prices paid for raw and unfinished materials are also measured, but these are not included in the overall index.  Report From Barons

 The ISM manufacturing index (formerly known as the NAPM Survey) is constructed so that any level at 50 or above signifies growth in the manufacturing sector. A level above 43 or so, but below 50, indicates that the U.S. economy is still growing even though the manufacturing sector is contracting. Any level below 43 indicates that the economy is in recession. Data Source: Haver Analytics