Why Markit and ISM Manufacturing PMI Readings Differ

Summary

The document asks why the Markit and ISM manufacturing purchasing managers’ indexes can report different monthly readings despite both serving as indicators of manufacturing conditions. The response characterizes them as similar economic barometers that use different weightings, which can produce divergent values.

This offers a basic interpretation for comparing the two indicators: they target related activity, but their construction is not identical. The response is very brief and provides no details about survey samples, component weights, calculation methods, or the size and direction of any differences. It also supplies no evidence or analysis beyond pointing to an external discussion. The explanation can help readers avoid treating the indexes as interchangeable, but it is not enough to quantify which series is more informative for trading or how either should be incorporated into a strategy.

Key ideas

• Markit and ISM manufacturing PMIs are similar barometers of manufacturing activity.
• Different weighting schemes can contribute to differences between their monthly readings.
• The brief response does not describe component weights, samples, or calculation details.
• The document does not establish which indicator is more useful for trading.

Tags

# Markit PMI vs ISM PMI


# Markit PMI vs ISM PMI












What is the difference between the Markit Manufacturing PMI and the ISM Manufacturing PMI? The monthly number differs a lot, my understanding is that they are trying to indicate the same thing.

## Answer by Kink (score 1)

https://quant.stackexchange.com/a/14258

http://www.calculatedriskblog.com/2012/12/manufacturing-ism-pmi-vs-markit.html

Two similiar barometers with different weights

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.