Friday, the shocking revisions of the growth of downward jobs – which sent cryptographic prices trooping – the PMI of the ISM services suddenly begins to constantly indicate a softer economic activity than well.
The ISM services for July arrived at 50.1, considerably lower than 51.5 expected. A number greater than 50 indicates an economic expansion and below this level contraction.
Sweet printing is notable because it is now a three -month -old weakness model, the number of May having been 49.9 and 50.8 of June – a significant slowdown from previous months.
The sign of economic weakness was a stagflationist signal integrated into the report, the prices paid the sub-index, which reached a cycle of 69.9.
“The prices cause additional costs while we continue to buy equipment and supplies … The cost is significant enough for us to reproduce other projects to adapt to these cost changes”, read a comment of the report.
Neither the crypto nor the traditional markets went kindly to the Tuesday data, Bitcoin (BTC) fell from $ 114,000 to $ 112,800, less than 2% in the last 24 hours. The Nasdaq overturned gains prior to a loss of 0.5%.
Fed Cut Now?
“The data is still undergoing major revisions when the economy is at an inflection point, such as a recession,” wrote economist Mark Zandi after Big Downward Jobs revisions on Friday.
“The economy is on the precipice of the recession,” he continued. “Consumption expenditure has a flat line, construction and manufacturing contract and employment should drop. With the increase in increase, it is difficult for the Fed to come to the rescue.”
The longtime managers of Hoisington Investment Management, Lacy Hunt and Van Hoisington are not so safe that the Fed can wait. Calling inflation gains from temporary prices and a first -round effect, Hunt and Hoisington say that the contraction effects of the second, the third and later are much more important.
“The Fed must quickly move to an accommodating policy,” they concluded. “The Fed will not be informed to wait … much more critical consideration is the upcoming contraction in global economic activity.”
