Non-Manufacturing PMI is a Purchasing Managers’ Index for non-manufacturing sectors of the American economy. More than 400 non-manufacturing executives are surveyed each month to provide the Institute of Supply Management (ISM) with up-to-date results. The purpose of this index is to monitor the economic conditions of the nation.
The importance of the non-manufacturing PMI
The index works in much the same way as any other PMI index with the sole difference of taking into account large number of firms across several industries instead of just one. Due to the role services play in the present-day US economy it gets even more attention than the manufacturing PMI.
PMI and the market
When the index is rising, the economy in general and the stock market in particular are on the rise. When the index is going down, the recession is either possible of has already begun, and the market will soon respond to it in the negative way. As a rule, a higher than expected non-manufacturing PMI reading is bullish for the USD, a lower than expected reading is bearish for the USD.
The United States ISM Non-Manufacturing PMI
The United States ISM Non-Manufacturing PMI latest reading for the month of June 2017 was 57.4, which was higher than the forecast reading of 56.5 and the previous reading of 56.9. For the first semester of 2017 the highest reading for the Index was 57.6 in February. The change from one year ago is +1.59%, and the all-time high reading was 62.00, while the all-time low reading was 37.60.
