The US ISM Services PMI, released monthly by the Institute for Supply Management (ISM), gauges the health of the non-manufacturing sector—roughly 80% of the economy. A reading above 50 signals expansion, below 50 contraction. Key drivers include business activity, new orders, employment, and supplier deliveries.
Here are the key details about the ISM Services PMI:
Key Aspects & Data
Purpose: Measures economic activity in the service sector (finance, healthcare, retail, etc.).
Threshold: >50 = Expansion; <50 = Contraction.
Components: Equally weighted by Business Activity, New Orders, Employment, and Supplier Deliveries.
Significance: Serves as a leading indicator of overall US economic health and GDP growth.
Release Timing: Typically on the third business day of the month.
Recent Trends & Context
The sector has shown resilience, frequently staying in expansionary territory.
It is closely watched alongside the ISM Manufacturing PMI to get a full picture of US economic activity.
