From the course: Economic Indicators

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ISM: Nonmanufacturing index

ISM: Nonmanufacturing index

From the course: Economic Indicators

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ISM: Nonmanufacturing index

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- The US is a service economy, and probably in a bigger way than you think. When I say services, many people think of fast food. This is because when politicians sometimes talk about high-quality manufacturing jobs and low-quality service jobs, they often use fast food restaurant jobs as an example. But services represent almost 80% of the US economy. That includes accounting, legal, financial, and also massage and manicure services. And at 80% of the economy, an indicator of service sector activity would be an important way to track growth for the majority of the US economy. The Institute of Supply Management, or ISM Non-manufacturing Index is the number one indicator of service sector activity in the United States. The ISM Non-manufacturing Index report includes a survey of purchasing managers from over 400 companies about their monthly business activities. The main number in this report's called a Purchasing Manager Index, or PMI. And the breakeven level for the PMI is 50. A PMI…

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