Previous : 52.0
Forecast : 51.0
Definition : It is a monthly survey conducted by the Institute of Supply Management (ISM), usually on the third business day of the month subsequent to the Manufacturing ISM. It is known as the services report; it gained recognition quickly since the index was introduced in 1998 as the services sector is growing in contributing with a large portion to the GDP.
The report is based on data compiled from monthly replies to questions asked of more than 370 purchasing and supply executives in over 62 different industries representing nine divisions from the Standard Industrial Classification categories. The sub-indices in the report include:
â€¢ New Orders
â€¢ Supplier Deliveries
â€¢ Backlog of Orders
â€¢ New Export Orders
â€¢ Inventory Sentiment
Why is it useful?The importance Level of ISM services index is supposed to be moderate, because it indicates consumers' willingness level to invest their money in the business and services sector; therefore if this index reading headway then its mean increasing consumer demand on different available services ,which on other hand is explained by rising consumers' confidence in current economic conditions. So the after effect of all those changes stimulates the economic situation according to increasing the money supply that creates an up ward pressure on the local currency value.
In respect of the ISM services impact on the stock market it's worth mentioning, concerning the fact that the huge demand on different services place a positive effect on investments environment for the entire companies in the services sector, which creates a significant movements on stock indexes and starts to move them ahead, then the stock market prospers generally.
Previous : 52.0