Austria: Manufacturing PMI rises but remains below neutral threshold in August
The UniCredit Bank Austria Manufacturing Purchasing Managers’ Index (PMI) improved to 44.4 in August from 43.1 in July. As a result, the index remained below the 50.0 no-change threshold but signaled a softer deterioration in manufacturing-sector operating conditions compared to the previous month.
The slight improvement reflected a softer decline in new orders. That said, this marked the 28th consecutive contraction, with firms noting a lack of investment appetite, attempts by customers to deplete stocks, weakness in the construction sector and a continued—albeit milder—decline in new work from abroad, particularly Germany. Moreover, August saw the fastest decline in production in seven months. As a result, firms continued to cut staff and reduce purchasing activity, though the rates of decline eased from July.
On the pricing front, average factory gate charges continued to fall modestly due to competition for new work in spite of a faster increase in input costs—driven by higher transport costs and delays in goods arriving from Asia. Lastly, business confidence deteriorated to a six-month low but remained marginally positive, as firms faced challenging market conditions and competition from lower-cost economies.