CTP 07 - The values for the index can be between 0 and 100...

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Tat Sang Lao ECON 202 – David Bell May 18, 2010 CTP 07 ISM The Institute for Supply Management (ISM), which was found in 1915, is the supply management association in American. ISM’s is a not-for-profit United States association for the benefit of the purchasing and supply management profession, particularly in the areas of education and research. ISM released some surveys monthly which tracks the amount of manufacturing activity that occurred in the previous month. This data is considered an economic measure. Therefore, economists look for their data for analyzing the economy condition and predicting the further economy. If the index has a value below 50 because of a decrease in activity, it tends to indicate an economic recession, especially if the trend continues over several months. A value above 50 likely indicates a time of economic growth.
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Unformatted text preview: The values for the index can be between 0 and 100. The institute for Supply Management typically employs economists to do research for the economy. Those economists analyze the collected data and make it to an index then produce reports for the market. For example, the ISM Services Index, economists send out surveys every month to those businesses which have the power to buy stuff and hire people to answer some questions about production levels, inventory levels, and employment environment. Due to the economists’ analysis, the ISM Index will affect the economy indirectly. The ISM Index is considered one of the factors which affect the management decision; therefore, economic activities may be affected by the Index....
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This note was uploaded on 04/17/2011 for the course ECON 202 taught by Professor Kotlove during the Spring '11 term at Edmonds Community College.

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CTP 07 - The values for the index can be between 0 and 100...

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