National Association of Purchasing Managers

The NAPM index provides a monthly glimpse of manufacturing activity that has occurred over the last 30 days and is based upon a survey of over 250 companies in 21 industries throughout the US.

Six areas are covered in the survey:

1. Production
2. Orders
3. Commodity Prices
4. Inventories
5. Vendor Performance
6. Employment

Respondents rate each of the above categories as "up", "down", or "unchanged".  An index is calculated and then adjusted for seasonal changes. A base reading of 50 implies that conditions are unchanged while readings above or below this base measure suggest either an expanding or declining environment, respectively. 

Strong numbers suggest a bearish bond market raising concerns of inflation, rising yields and interest rates,  while a weak report is viewed as bullish by economists.

 Manufacturing Activity