⚠️Automatic translation pending review by an economist.
The ISM Manufacturing Index and the PMI Manufacturing Index are two leading indicators of industrial activity in the United States, particularly the manufacturing production index. They are calculated on the basis of the same sub-components. Standardized at 50 (above 50 indicates expansion of activity, below 50 indicates contraction), they do not, however, show the same levels. However, the ISM and PMI are two indicators that are closely followed on the financial markets, with literature demonstrating their significance in explaining variations in US sovereign bond interest rates and equities. Below is a table showing the weightings for each component to help understand why the estimates differ.
