Volatility in cryptocurrencies continues to rise in light of macroeconomic data, with a prevailing downward trend. The latest PMI data, which provides signals about the current state of the US economy, has now been released. Let’s quickly evaluate both the recent data and the market impact of the PMI figures.
US PMI Data
The PMI data, short for Purchasing Managers’ Index, tells us the state of the economy in the relevant area. Purchasing managers are the personnel who know the demand for products and services in companies best. For example, think about the company you work for; the purchasing manager there buys more raw materials, services, etc., as your company grows. Or if there is a contraction in the sector your company is in, the scale of expenditures also contracts proportionally.
PMI data is published monthly for different sectors, revealing whether the sectors are growing, shrinking, or neutral. Values above 50 indicate that growth is continuing, albeit moderately, while values below reflect contraction in the sector. For a clear idea, similar data needs to be observed for three consecutive months.
Today’s data and the predicted figures were as follows:
- US S&P Services PMI (Expectation: 55.1 Previous: 55.2) Announced: 55.7
- US S&P Composite PMI (Expectation: 54 Previous: 54.1) Announced: 54.6
Important parts of the report details are as follows:
“Despite strong improvements in both activities and new business, the decrease in employment for the first time in three months in August was disappointing on the employment front. However, the reduction in personnel levels remained modest. Participants mostly reported that replacements were not hired due to cost concerns.”
According to the data, there is a moderate recovery in US growth. This situation weakens recession concerns and may push the Fed not to push the boundaries further in employment cooling. For cryptocurrencies, since a recession would be a bad environment, the data can be considered positive.
