The concept
Definition: monthly surveys of purchasing managers by the Institute for Management. Above 50 = expansion, below 50 = contraction.
Why it matters
They are early indicators of business activity.
How markets interpret it
Prices-paid sub-indices are watched for clues. Market reactions are never guaranteed: they depend on expectations, positioning, and other news.
Key takeaways
- Above 50 = expansion.
- Monthly surveys.
Knowledge check
An ISM reading of 47 suggests…