Darren Winters

The ISM stands for the Institute of Supply Management. The NON-Manufacturing Index focuses on the non-manufacturing portion of the services sector. This Manufacturing Index is closely watched by traders. Purchasing managers are surveyed on the present situation of economic factors relevant to their position. Factors such as new orders, inventories, production, employment, etc are all considered in this report.

This indicator tends to feed data into other indicators that will be released later. Investors monitor this indicator, so as to have some idea as to how the economy is doing, and what the other indicators still to come might be like. A reading of 50 measures the lack of expansion, and a reading above 50 would indicate economic expansion.

This monthly survey evaluates the future strength of the economy. Consumer optimism will of course have a positive impact on the strength or weakness of an economy. When consumer confidence is high the purchase of goods and services tends to increase as well, thus stimulating economic growth.

This monthly report measures the number of homes sold in the prior month. Existing Home Sales and New Home Sales have increased in importance over the last few years. A positive report reflects the health of the property market, and vice versa.

Economic indicators are very important to follow. These economic reports influence both the stock market, and the currency market US$, as well as the bond market.

It is always important to remember what figure is the market expecting, and if the actual figures that are released, are above or below expectations. Trend on a year over year, and quarter over quarter basis is also of key importance.

ADP Nonfarm Employment Change

The ADP (Automatic Data Processing, Inc.) Nonfarm Employment Change is a measurement of the number of new jobs created in the previous month (of course excluding farming related employment). This report is said to be a precursor to the much more widely followed Nonfarm Payroll Report, which of course is released two days later.