⚙️ISM Manufacturing Report: Interactive Chart & Forex Insights
The Manufacturing PMI (Purchasing Managers’ Index) is a key economic indicator that provides insight into the performance of the manufacturing sector in the United States. It is compiled and published by the Institute for Supply Management (ISM) and reflects the economic health of the manufacturing industry, a critical component of the overall economy.
The PMI score is interpreted as follows:
The PMI is presented as a single number, ranging from 0 to 100, which is derived from survey data collected from purchasing managers at manufacturing companies.
- Above 50: Indicates an expansion in the manufacturing sector compared to the previous month.
- Below 50: Indicates a contraction in the sector.
- At 50: Reflects no change in activity.
The further the PMI is from 50, the stronger the magnitude of expansion or contraction.
- Above 60: Indicates very strong growth in manufacturing, often accompanied by rapid economic expansion.
- Below 45: Signals severe contraction, often associated with recessions.
During COVID-19 (2020): PMI plunged below 50, reflecting factory closures and economic downturns, but rebounded strongly as stimulus measures boosted demand.
Global Supply Chain Issues (2021-2022): PMI data highlighted bottlenecks and inflationary pressures, leading to significant market reactions.
Summary
The USD Manufacturing PMI is a vital tool for understanding the health of the U.S. economy, business sentiment, and future market trends. Its comprehensive nature makes it indispensable for traders, investors, and policymakers alike. By interpreting its components and tracking trends, you can better anticipate economic developments and adjust your trading strategies accordingly.
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