Comparison of S&P Global PMI and ISM Surveys

This document is a technical report that analyzes the differences between two prominent surveys of US business conditions: the S&P Global PMI and the ISM surveys. It outlines the methodological distinctions that can lead to varying results and highlights the implications of these differences for users of the surveys. The report details aspects such as industry coverage, the types of job titles surveyed, company size representation, geographical focus, panel sizes, and the nature of questions asked. It notes that the S&P Global PMI surveys, with their larger sample sizes and advanced methodologies, provide clearer signals regarding economic trends and corporate performance. The report also compares the performance of both surveys in relation to official measures of manufacturing and services output, indicating that the S&P Global PMI exhibits lower volatility and higher correlation with GDP changes. Additionally, it discusses the implications of these findings for understanding corporate earnings and economic indicators.