Understand how manufacturing data signals expansion or recession.
What is ISM?
The ISM Manufacturing Index measures business activity in the manufacturing sector.
Key Threshold
Above 50 → Expansion Below 50 → Contraction
Why It Matters
Manufacturing responds quickly to economic changes, making it a leading indicator.
Market Impact
- Strong ISM → Growth optimism
- Weak ISM → Recession risk
Conclusion
ISM helps identify turning points before broader economic data.