PMI Explained: ISM Surveys & Business Cycle Reads

What it is

Composite diffusion indexes built from surveys of purchasing managers. A reading above 50 signals expansion; below 50 signals contraction. Sub-indexes cover new orders, employment, and prices paid.

Why traders care

Services PMI maps to ~80% of US GDP. Hot prices-paid components reinforce sticky-inflation narratives; sub-50 composites revive recession and cut bets. Global flash PMIs hit EUR and risk sentiment on the same day.

Release schedule

ISM Manufacturing early month; ISM Services a few business days later.

Typical time: 14:00 UTC (manufacturing); 14:00 UTC (services)

Assets most affected