ISM Manufacturing Index

http://mam.econoday.com/byshoweventfull.asp?fid=456247&cust=mam&year=2013&lid=0

ISM Mfg Index

Released On 4/1/2013 10:00:00 AM For Mar, 2013 Prior Consensus Consensus Range Actual ISM Mfg Index - Level 54.2  54.0  51.6  to 55.0  51.3

Highlights Orders are coming into the manufacturing sector but not at a very fast rate, at least based on the ISM manufacturing report where the headline index slowed to 51.3 in March for a sizable decline from 54.2 and 53.1 in the prior two months. New orders fell to 51.4 for a 6.4 point decline from February and compared with 53.3 in January. New orders have been moving up and down with four sub-50 readings since June last year. But new export orders are very solid in the report, rising 2.5 points to a 56.0 level that's the best since April last year. And ISM's sample hasn't had to work down their backlogs which are at 51.0 for the second straight plus 50-reading that follows nine straight sub-50 readings. Employment is also very positive, at 54.2 to indicate the strongest rate of hiring since June. But that's where most of the good news stops with production growth slowing noticeably in the month. Deliveries picked up pace which is a sign of slack conditions. Inventories fell slightly to indicate that the sample is working down stocks. Today's report points to a slowing for the manufacturing sector, nothing dramatic and perhaps desirable as it limits the risk of excess and unsustainable activity. Still, today's report isn't likely to be a plus for today's markets.

Market Consensus before announcement The composite index from the ISM manufacturing survey for February offered very good news, reflected in a 1.1 point gain for the headline index to 54.2, and acceleration in new orders which jumped 4.5 points to a very strong 57.8. A plus in this report was strength in new orders for exports, which accelerated to 53.5 for a 3-1/2 point gain. Total backlogs were especially strong in the ISM report, at 55.0 for a big 7-1/2 point gain.

Definition The Institute for Supply Management surveys more than 300 manufacturing firms on employment, production, new orders, supplier deliveries, and inventories. A composite diffusion index of national manufacturing conditions is constructed, where readings above (below) 50 percent indicate an expanding (contracting) factory sector. Export orders, import orders, backlog orders and prices paid for raw and unfinished materials are also measured, but these are not included in the overall index.  Why Investors Care

The ISM manufacturing index (formerly known as the NAPM Survey) is constructed so that any level at 50 or above signifies growth in the manufacturing sector. A level above 43 or so, but below 50, indicates that the U.S. economy is still growing even though the manufacturing sector is contracting. Any level below 43 indicates that the economy is in recession. Data Source: Haver Analytics