The ISM (previously NAPM) report is a comprehensive national survey of purchasing managers, and covers such information as new orders, employment, delivery times, production, import orders, prices, export orders and inventories.
The index is calculated by weights of selected categories: new orders - 30%, production - 25%, employment - 20%, deliveries - 15%, inventories 10%. Although the number of companies may not be very extensive - over 300 companies in 20 industries throughout most of the states – it provides information on the overall business conditions in the United States.
Because this survey is very comprehensive, it is one of the most followed monthly reports in the private sector. It may also be used as a leading indicator for purposes of prediction of the business cycles.
Periodicity of publication
The ISM Report on Business is released on a monthly basis on the first business day of the following month it applies to.