It is an economic survey by the Institute of Supply Management based on more than 400 non-manufacturing firms within about 60 sectors across the country. The ISM Non-Manufacturing Survey measures the change in production level of non-manufacturing firms from month to month. It is most important indicator which signify economic growth. A number above 50 is considered positive for economy growth.
ISM Non-Manufacturing Survey measures new orders, market prices and employment trends. Although it has less market impact because its data is more predictable and cyclical, but still it is valuable by providing insights of business conditions which have impact on inflationary pressures and output. By monitoring the index, investors and traders are able to better understand national economic conditions. With the increase in indicator, traders and investors assume that stock market will grow due to high corporate profit.
The data of ISM Non-Manufacturing Survey is released on monthly basis during the 1st week on each month by Institute of Supply Management. Figure above 50 is considered positive for economic growth while lower than to taken as negative economic growth.