what does ism stand for
DEFINITION of 'ISM Manufacturing Index '. An index based on surveys of more than 300 manufacturing firms by the Institute of Supply Management. The ISM Manufacturing Index monitors employment, production inventories, new orders and supplier deliveries.A composite diffusion index is created that monitors conditions in national manufacturing based on the data from these surveys.he ISM Manufacturing Index monitors employment, production inventories, new orders and supplier deliveries. A composite diffusion index is created that monitors conditions in national manufacturing based on the data from these surveys.