ISM versus PMI: which do you trust for the US?
The US has two manufacturing surveys — the ISM and the Markit PMI — and they disagree regularly. The market watches both and weights them differently over time.
What's your preference?
- which survey you trust and why
- how you handle their disagreements
- the reading you apply to each
Background: PMI explained and US ISM services.
Background: PMIs explained: the survey data that moves currencies early
Purchasing managers' indexes are among the first economic numbers published each month. What the 50 line means, which PMIs matter and how traders use them.
What does a PMI of 50 mean?
50 is the dividing line: readings above 50 indicate that business activity is expanding compared with the previous month, and readings below 50 indicate contraction.
What is a flash PMI?
An early estimate published before the month ends, based on most of the survey responses. Flash PMIs often move markets more than the final figures.
Comments
Log in to join the discussion. Comments follow the community guidelines.
Log in to commentLoading comments…