Importance: **

Definition:  The National Association of Purchasing Managers (NAPM) index is based on a survey of over 250 companies within twenty-one industries covering all 50 states. It provides the first glimpse each month of manufacturing activity during the past 30-day period.

Related Indicators:

Source: National Association of Purchasing Managers (NAPM)

Frequency: Monthly

Availability: First working day of the month following the reported period.

Direction:

Timing:

Volatility: Moderate     

Likely Impact of Financial Markets:
 
        Interest Rates: Stronger-than-expected monthly index or increasing trend is considered
        inflationary, causing bond prices to drop and yields interest rates to rise.

        Stock Prices:

        Exchange Rates:

Ability to Affect Markets:

Analysis of the Indicator:

The survey covers the following six areas:
    Production
     Orders
     Commodity Prices
     Inventories
     Vendor Performance
     Employment

Participants are asked to characterize each of these categories as "up", "down", or "unchanged". The calculated index is then adjusted for seasonal changes. A reading of 50 indicates conditions are unchanged. A reading over 50 suggests an expanding environment and under 50, declining.
The bond market views a strong number as bearish and a weak report as bullish.

Web Links

For more information on this indicator take a look at  The NAPM homepage.

A graph of the latest NAPM Data.