ISM Manufacturing PMI

The ISM Manufacturing PMI is a monthly survey that measures whether U.S. factories are expanding or contracting. PMI stands for Purchasing Managers' Index—it asks factory managers about new orders, production, and hiring to create a single score between 0 and 100. Scores above 50 signal growth; below 50 means the sector is shrinking. You'll see it reported on the first business day of each month, and investors watch it closely because manufacturing is a bellwether for the broader economy. If factories are struggling, consumers and businesses usually struggle soon after. For example, if the ISM PMI drops sharply, it might signal that companies are pulling back on spending, which could eventually hurt retail stocks.