Gold Falls, Crypto Rises After PMI Shows Slowdown in Growth

Gold slump follows report showing US service provider and manufacturer activity in September grew at the slowest pace in 12 months.




key takeaways

  • Sluggish growth likely due to a decrease in demand and heightened supply chain issues
  • IHS Markit data revealed that business activity pace is at its slowest in a year

Gold fell to session lows, Thursday, after IHS Markit data revealed that Unites States business activity grew at the slowest pace in a year in September, mostly due to supply chain disruptions and capacity shortages, the economic data provider said. Cryptocurrencies were mostly trading higher Thursday morning. 

The IHS Markit flash composite index of purchasing managers at service providers and manufacturers was 54.5 in September, down from 55.4 in August, the report noted. Any reading higher than 50 shows growth in the sector, and readings have declined each month for the past year. 

“The slowdown was led by a cooling of demand in the service sector, linked in part to the delta variant spread,” Chris Williamson, chief business economist at IHS Markit, said in a statement. “However, while manufacturers have seen far more resilient demand, factories face growing problems in sourcing enough supplies and labor to meet orders.” 

The flash services business activity index came in at 54.4 this month, down from 55.1 in August — a 14-month low.

“Contributing to the softer increase in activity was a slower rise in new business,” the report said. “Though solid, the rate of growth slowed for the fourth month running amid less robust demand conditions and ongoing COVID-19 worries.” 

Inflation is on the rise, experts at IHS Markit warned, noting that the rate of cost inflation was the quickest for four months, and the second-highest on record. Researchers at the firm cite supply chain disruptions and material shortages for increased prices and transportation costs. 

Gold was trading about 1% lower at the time of publication, while bitcoin and ether were up 2% and 3%, respectively. US equities were trading 1% higher. 

The United States manufacturing Purchasing Managers Index for September fell to a reading of 60.5, down from the August reading of 61.1.

Are you a UK or EU reader that can’t get enough investor-focused content on digital assets?Join us in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket. Buy it now.


Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research



Data publishing costs have historically been a bottleneck for rollups, and as more rollups launch, interoperability will continue to be a major challenge. Avail presents a potential solution to rollup fragmentation through its three products: Avail DA, Nexus, and Fusion, which together aim to unify the web3 experience.


Short-term “sell the news” reactions could follow new BTC price peaks months from now, industry watchers say — but only if history repeats itself


While crypto fundraising remains well off its bull market highs, Q1 data shows capital is returning to the space


Billed as a better BRC-20 fungible token standard, Bitcoin Runes launches tomorrow


Bitcoin miners need to explore unconventional energy avenues or be buried by the financial realities created by this halving


BlackRock’s iShares Bitcoin Trust continues to see daily positive net flows, though its inflow total for a single day hit a new low Wednesday


Binance is making moves, from receiving a new license in Dubai to switching its SAFU fund to USDC