U.S. ISM Non-Manufacturing Purchasing Managers Index (PMI)

The Institute for Supply Management (ISM) Nonmanufacturing Purchasing Managers’ Index, also known as ISM Services PMI, is a composite index calculated as an indicator of the general economic condition of the nonmanufacturing sector.

A value above 50% indicates that the non-manufacturing sector economy is generally expanding. A value below 50% indicates that the non-manufacturing sector is generally shrinking. The ISM Non-Manufacturing Business Report is based on data compiled from the monthly responses of more than 370 purchasing and supply managers in more than 62 different industries representing nine Standard Industrial Classification (SIC) divisions.

The release of a value that is higher than expected should be considered positive/bullish for the USD, while the release of a value that is lower than expected should be considered negative/bearish for the USD.

The ISM Purchasing Managers’ Index for the services sector was released at 15:00 on January 6 and came in at 3.5%, 0.2% lower than expected. It should also be noted that the value of the last period of this index was 3.6%.

After the release of this index, which was below expectations, the value of USD/CAD in the markets fell to 1.3432.