spglobalpmi

S&P Global reported in its latest release that the final U.S. services PMI for September came in at 58.8, up from 58.7 previously, while the final composite PMI held steady at 58.4. The pace of business activity expansion climbed to its highest level in more than five years, new order growth hit a four-and-a-half-year high, and job creation was the strongest since mid-2022.

These robust figures suggest that U.S. economic growth in the third quarter could approach 4%, but the other side of the coin is that inflationary pressures are beginning to re-emerge. The chief business economist noted that inflation in business input costs rose to a four-year high. Rising service prices, combined with higher fuel costs, are fueling concerns that the economy may be overheating.

In macro financial markets, the strong PMI data further dampened expectations for a rapid easing of monetary policy, keeping the U.S. dollar index and Treasury yields relatively firm in the near term. While economic fundamentals remain solid, persistent cost pressures are making the outlook for interest rates increasingly uncertain.

For crypto markets, expectations for macro liquidity remain a key driver of investor sentiment. If sticky inflation keeps interest rates elevated for longer, risk assets could face near-term valuation pressure. However, a strong macroeconomy also provides a floor for overall liquidity, and the market is still seeking a clear direction amid the ongoing tug-of-war between bulls and bears. #SPGlobalPMI #MacroEconomics #CryptoMarket