is ism a leading indicator 
ism pmi data is considered to be a leading indicator of economic trends not only does the ism manufacturing index report information on the prior two months but it also outlines long term trends that have been building over time based on prevailing economic conditions the bottom linethe institute for supply management s monthly manufacturing pmi report on business outlines directional trends for several manufacturing indexes this report details month over month changes in growth or contraction in addition to reporting how long each index has been moving in its current direction the ism manufacturing index is useful in understanding the direction of economic activity from the lens of the country s primary manufacturing companies 