US PMI Signals Economic Slowdown, Impact on Crypto

US PMI Data Analysis – June

Lede: US PMI data for June shows modest economic expansion, with Composite PMI at 52.8 and Manufacturing PMI at 52.

Nut Graph: S&P Global’s US PMI figures indicate a slowing economy influencing market sentiments, especially within crypto sectors.

S&P Global’s US PMI Figures

The S&P Composite PMI for June is reported at 52.8, lower than May’s 53. The Manufacturing PMI stands at 52, also a decrease from 51.3, signaling modest economic expansion but reduced momentum.

Key institutions involved include S&P Global and the Federal Reserve. Macro indicators show a US growth slowdown, affecting crypto risk appetite. The Fed Funds rate holds steady, affecting major cryptocurrencies and altcoins sensitive to macroeconomic trends.

Immediate Effects on Markets

Immediate effects see crypto and risk assets facing potential volatility due to changes in macroeconomic signals. Past decelerations, like 2018, saw similar impacts. Stakeholders in the crypto industry remain watchful of Federal Reserve policies and economic forecasts .

Future Projections

KPMG projects US GDP growth of 1.2% in Q2, with consumer spending likely to increase slightly. Historical trends suggest major cryptocurrencies, including Bitcoin and Ethereum, will respond to macro shifts, influencing price and volatility.

GDP growth is expected to rise by 1.2% in the second quarter. Consumer spending is expected to pick up slightly, while housing remains in a rut. The risk of a recession is still too high for comfort. – KPMG Representative

Potential outcomes include financial market adjustments and crypto market shifts with on-chain data. Major altcoins’ liquidity could shift based on macroeconomic conditions, providing key insights into potential market realignments.