It is also called purchasing manager index which measure the change in manufacturing activity of different firms across the country by Institute of Supply Management. The survey is based on more than 300 manufacturing firms. The ISM manufacturing survey measures the change in production level of different firms across the country from month to month. The report is released on monthly basis usually at first business day of every month. It is the earliest report that business people and investors get regularly.
By monitoring the ISM manufacturing survey, the business people, investors and traders can better understand the financial market and economic condition of country. The figure more than 50 is considered expansion of manufacturing sector, reading of 50 indicate no change while reading below 50 is taken as contraction of manufacturing sector.