Fed Rate Reduction in September? What US Manufacturing PMI Figures Truly Indicate
The revival of US manufacturing is at hand! At least that’s the anticipation of crypto investors as markets prepare for a crucial Tuesday and new manufacturing PMI figures, with fresh US economic data poised to influence the next phase of sentiment in financial and crypto markets. Attention will focus on the Manufacturing PMI (forecast: 53.3, prior: 49.8) at 9:45 AM ET, followed by the ISM Manufacturing PMI (forecast: 48.9, prior: 48.0) at 10:00 AM ET.
Manufacturing stands as the sole vital sector of the economy: wealth generation arises from value-added manufacturing. Services merely serve to enhance manufacturing.
Wait, was that the correct Twitter post? Eh, it suffices.
Experts anticipate the ISM figure to remain in contraction but inch closer to the 50 mark. “98–100k is pivotal. We drop below that, officially indicating the bull run is finished,” one crypto holder remarked on X, connecting equity and trading market movements to industrial robustness. So, what crypto updates can you expect today?
Important US Manufacturing PMI and ISM Data to Monitor on September 2. Does the Manufacturing PMI Indicate a September Fed Rate Cut?
Equity markets often track PMI announcements closely. Historically, better-than-anticipated results have propelled risk-on trades in both stocks and digital currencies; letdowns have produced the contrary response. The upcoming reading is crucial, and if it stays above 49.5, the recovery narrative remains intact; otherwise, the correction will persist.
July’s economic indicators provided no definitive conclusion regarding the recovery of the US economy. Capital goods orders increased by 1.1% and shipments by 0.7%, indicating enduring equipment demand. However, regional surveys presented a mixed picture, with the Empire index signaling growth while Dallas remained weak. This serves as a reminder that the U.S. manufacturing sector is still quite heterogeneous.
FIND OUT: Top 20 Cryptos to Buy in 2025
Transition from Manufacturing to Technology: The Evolution of the US Economy
The policies that solidified America’s industrial leadership, including rising wages, labor rights, and protection standards, also increased production costs.
By the 1980s, US manufacturing began to be challenged by less expensive international competitors. Fast-forward to 2025, and President Donald Trump’s tariffs and subsidies have produced effects contrary to his intentions, at least thus far, by fueling inflation and elevating consumer prices.
The significant transition that ensued is an enduring narrative at this stage. Manufacturing yielded to technology and services, industries designed to scale at significantly lower costs. Apple relocated production overseas, while design and research remained stateside, indicating the direction in which American value creation has evolved.
FIND OUT: 9+ Best High-Risk, High-Reward Crypto to Buy in July 2025
Will the US Manufacturing PMI Indicate a September Fed Rate Cut?
Even with its prolonged decline, manufacturing continues to influence crypto market sentiment as it reflects the broader economic landscape. A drift of PMIs towards neutral would align with the soft-landing theory.
Polymarket investors foresee two 25-basis-point rate decreases in 2025, expected in September and December, according to CME FedWatch and recent analysis. Nonetheless, forecasts may adapt as analysts from Goldman Sachs and others predict up to three cuts, dependent on forthcoming inflation and labor statistics.
Join The 99Bitcoins Announcement Discord Here For The Latest Market Insights
Essential Insights
- US manufacturing is on the mend! At least that’s the wish of crypto investors as markets gear up for a critical day and new manufacturing PMI metrics.
- Per Polymarket, the market forecasts two 25-basis-point interest rate cuts in 2025, likely in September and December.
The article Fed Rate Cut in September? What US Manufacturing PMI Data Really Signals first appeared on 99Bitcoins.
