{"id":151162,"date":"2019-07-09T10:06:23","date_gmt":"2019-07-09T14:06:23","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=151162"},"modified":"2019-07-09T07:07:10","modified_gmt":"2019-07-09T11:07:10","slug":"using-ism-pmi-to-predict-the-nfp","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/07\/using-ism-pmi-to-predict-the-nfp\/","title":{"rendered":"Using ISM PMI To Predict The NFP"},"content":{"rendered":"
July 9, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Among many things, one of the most closely watched reports when it comes to forex trading is the ISM\u2019s PMI<\/strong>. PMI stands for Purchasing Manager\u2019s Index and the ISM report indicates business conditions in two main sectors.<\/p>\n

The ISM PMI survey is conducted by the US-based Institute for Supply Management (ISM for short). ISM is a non-profit organization. These surveys are leading indicators and they give traders a glimpse into various aspects of the economy.<\/p>\n

The ISM\u2019s PMI reports are an important market moving indicator. Not only do these surveys predict the short-term outlook, but the reports are also widely used elsewhere.\u00a0One of the most common uses of the ISM\u2019s PMI reports is in predicting the non-farm payrolls report.<\/strong><\/p>\n

The NFP report is a monthly employment report which is released by the Bureau of Labor Statistics.\u00a0Besides serving as a tool to predict payrolls, the ISM reports also show how businesses are faring.<\/strong><\/p>\n

What Does the ISM PMI Comprise of?<\/strong><\/h2>\n

The ISM surveys cover the manufacturing and non-manufacturing sectors<\/strong>. The non-manufacturing sectors are also called the services sectors.<\/p>

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They are conducted based on a survey of various participating firms. Any firm can sign up to receive the survey questions and report to ISM accordingly.<\/p>\n

Officially, the ISM\u2019s reports are called as:<\/p>\n