ISM Services Index

Previous: 54.4
 
Forecast: 53.0
 
Definition 
A national non-manufacturing index based on a survey of roughly 370 purchasing executives in industries including finance, insurance and real-estate (or FIRE), communications and utilities. This sister of the Purchasing Managers' Index measures service-sector activity. It is issued monthly by Institute for Supply Management.
 
General Effect
The importance Level of ISM services index is supposed to be moderate, because it indicates consumers' willingness level to invest their money in the business and services sector; therefore if this index reading headway then its mean increasing consumer demand on different available services ,which on other hand is explained by rising consumers' confidence in current economic conditions. So the after effect of all those changes stimulates the economic situation according to increasing the money supply that creates an up ward pressure on the local currency value.

In respect of the ISM services impact on the stock market it's worth mentioning, concerning the fact that the huge demand on different services place a positive effect on investments environment for the entire companies in the services sector, which creates a significant movements on stock indexes and starts to move them ahead, then the stock market prospers generally.