| Description | Also known as Non-Manufacturing ISM, this index is based on a survey of about 370 purchasing executives in industries of finance, insurance, real estate, communications, and utilities. It reports business activity in the service sector. Readings above 50% indicate expansion for the non-manufacturing components of the economy. While readings below 50% indicate contraction. The is a new index created in 1997, so it’s not followed as closely as the ISM Manufacturing Index, which dates back to the 1940s. Empirical work has shown that significant surprises in the ISM Index are correlated with stock price movements. |