ISM Manufacturing PMI (Purchasing Managers’ Index)

ISM Manufacturing PMI (Purchasing Managers' Index)

Release Date and Time: February 3, 2025, at 10:00 AM EST (15:00 UTC)

The ISM Manufacturing PMI, published by the Institute for Supply Management (ISM), is a critical economic indicator that assesses the health of the U.S. manufacturing sector. Derived from a monthly survey of purchasing managers at manufacturing firms nationwide, the PMI provides a snapshot of sector activity. A reading above 50 indicates expansion, while a reading below 50 signals contraction.

Significance to the Federal Open Market Committee (FOMC)

The Federal Open Market Committee (FOMC) closely monitors the ISM Manufacturing PMI due to its role as a key barometer of economic conditions. The manufacturing sector is a vital component of the U.S. economy, and the PMI offers valuable insights that inform monetary policy decisions. Below are the primary reasons for the FOMC’s focus on this indicator:

Impact on Financial Markets and the Economy

The ISM Manufacturing PMI has far-reaching implications for financial markets and the broader economy:

Key Data and Expected Impact

The ISM Manufacturing PMI is a vital tool for understanding the performance of the manufacturing sector and its broader economic implications. It provides critical insights that guide the FOMC’s policy decisions and inform market participants, ensuring a well-informed approach to economic and financial strategy.