Leading IndicatorsInstitute for Supply ManagementMonthly

ISM Manufacturing New Orders

What is ISM Manufacturing New Orders?

A diffusion sub-index of the ISM Manufacturing PMI measuring new orders received by purchasing managers. It is the most forward-looking component of the report.

Why it matters

New Orders leads the headline PMI by 1-2 months and leads industrial production and S&P 500 EPS by 6-9 months. Sustained readings above 55 historically correspond with earnings upgrades; below 45 with downgrades.

How to read prints

When it rises

Forward manufacturing demand strengthening; earnings tailwind.

When it falls

Forward demand weakening; earnings downgrade risk rising.

Frequently asked

What is ISM Manufacturing New Orders?
A diffusion sub-index from the monthly ISM Manufacturing PMI survey, measuring whether purchasing managers report more, same, or fewer new orders vs. the prior month.
Why is it a leading indicator?
New orders are the earliest signal in the production cycle. They lead production, inventory, employment, and earnings by 1-9 months.
What levels matter?
Above 50: expansion. Above 55: solid demand. Below 50: contraction. Below 45: recession risk if sustained.
What is the New Orders / Inventories ratio?
New Orders divided by Inventories. Rising above 1 signals tightening conditions and is a strong cyclicals signal; falling below 1 signals destocking and weakness.

Track it on Market Ontology

Monitor ISM Manufacturing New Orders in real time on Macro Regime, alongside regime classification, transmission mapping, and cross-asset context.

SourceInstitute for Supply Management
FrequencyMonthly
CategoryLeading Indicators
Unitindex
Related ModuleMacro Regime

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