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.

article-image

Shutterstock

share
  • 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.


Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.jpg

Research

Figure, founded by former SoFi CEO Mike Cagney, has emerged as a leader in onchain RWAs, with ~$17.5B publicly tokenized. The platform’s ecosystem volume is growing ~40% YoY as it expands beyond HELOCs into student loans, DSCR loans, unsecured loans, bankruptcy claims, and more. Operationally, Figure cuts average loan production cost by ~93% and compresses median funding time from ~42 days to ~10, creating a durable speed-and-cost advantage.

article-image

Former White House crypto official Bo Hines is expected to be the CEO of the new project

article-image

In bonds, stablecoins and billionaires, a reminder of what makes crypto special

article-image

21Shares exec says CPI and PPI data supports a Fed rate cut, with market leaning toward a 25bps decrease

article-image

The Ethereum co-founder suggested LINEA holders would be eligible for other airdrops in cryptic tweet

article-image

The layer-2’s biggest release yet brings benefits — but a post-upgrade outage caused a chain reorg

article-image

Crypto is shifting into risk-on mode — pump.fun dominates meme activity, while Lido leans on treasury maneuvers