ISM® Corrects Manufacturing Report On Business® PMI®
FOR RELEASE: June 3, 2014
Vice President, Research and Analysis
Institute for Supply Management®
Phone: (480) 752-6276, ext. 3048
(Tempe, Ariz.) June 3, 2014 — ISM has begun a process assessment and taken other steps to ensure that its monthly Manufacturing Report On Business® PMI® continues to be a consistent and reliable indicator of the state of the U.S. manufacturing economy.
"We take very seriously the responsibility we have to inform U.S. businesses and government entities of timely and accurate PMI data, just as we have for more than 80 years," said ISM CEO, Tom Derry. "We have already changed our quality review process and will evaluate our software and every step in the preparation of the report to prevent a repetition of this error."
Shortly after it released its Manufacturing Report On Business® (ROB®) at 10:00 AM EDT June 2, ISM received messages from a number of economists at private companies who noticed that four sub-indexes used to calculate the composite PMI had been seasonally adjusted using the April factor rather than the May factor. After verifying the error, recalculating, and confirming the new calculations, ISM issued an updated report at 3:00 PM EDT.
The May PMI® registered 55.4 percent, an increase of 0.5 percentage point from April's reading of 54.9 percent, based on the correct data.
"We have not had a calculation error in the Manufacturing PMI in recent memory," said Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. "Once we verified the error we took immediate steps to deliver the correct information to businesses, media and other stakeholders. We thank those who reached out to us immediately once they discovered the discrepancy."
Institute for Supply Management® (ISM®) is the first supply management institute in the world. Founded in 1915, ISM's mission is to enhance the value and performance of procurement and supply chain management practitioners and their organizations worldwide. By executing and extending its mission through education, research, standards of excellence and information dissemination — including the renowned monthly ISM® Report On Business® — ISM maintains a strong global influence among individuals and organizations. ISM is a not-for-profit educational association that serves professionals with an interest in supply management who live and work in more than 80 countries. ISM offers the Certified Professional in Supply Management® (CPSM®) and Certified Professional in Supplier Diversity® (CPSD®) certifications.