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

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. What you can expect: And more! Don’t miss out on the opportunity to be in the room when the future of crypto is decided. Join us and help shape the future of our […]

recent research

Research report - cover graphics-2.jpg


Base has doubled-down on its commitment to the Superchain vision, has shown early signs of success with nearly $400M in TVL, and has become home to novel dapps such as which has seen significant traction.


“In general, zero-knowledge is the future” says ZeroSync founder. But Bitcoin is infamously slow to change


Former FTX US president Brett Harrison says regulators have a difficult job, and only time will tell where their priorities lie


While the revelation is “a little disappointing,” CoinShares head of research says the impact on the stablecoin’s “robustness” is likely limited


The crypto VC’s general counsel penned a pair of essays Wednesday advocating a Machiavellian system of DAO governance that emphasizes checks on power


On Thursday, a panel of judges denied Sam Bankman-Fried’s appeal to be released ahead of trial


Eclipse will use Solana’s virtual machine for execution, Ethereum for settlement, Celestia for data availability and Risc Zero for proving