The Institute for Supply Management (ISM) released its Manufacturing Purchasing Managers' Index (PMI) data for February today, which showed results slightly below market expectations. The index recorded 50.3 points, lower than the expected 50.6 points, and the previous reading was 50.9 points in January.
On the other hand, the PMI prices index published by the institute recorded a very positive reading of 62.4 points in February, surpassing expectations which predicted it would record only about 56.2 points, while the previous reading for January was 54.9 points.
This index is based on comprehensive surveys of over 600 purchasing managers, aiming to measure the relative level of business conditions in areas such as employment, production, new orders, prices, as well as resource delivery and inventory.
It is known that this index significantly affects currency movements, as it is considered positive for the currency if the actual value exceeds expectations, while it is seen as negative if it falls short of the forecast.
