Austrian Manufacturing Sector Downturn Eases at Start of 2025

2025-01-29 09:18 By Joshua Ferrer 1 min. read

The UniCredit Bank Austria Manufacturing PMI rose to an eight-month high of 45.7 in January 2025 from 43.3 in December.

While the sector remained in contraction, the rate of decline eased as output, new orders, employment, and purchasing activity fell at a slower pace.

Production shrank at the slowest pace since May 2024 as customer reluctance eased despite economic concerns.

Additionally, new orders fell at a much slower pace, among the mildest declines since May 2022.

Similarly, backlogs of work fell at the slowest pace in two-and-a-half years, leading to further job cuts that remained historically sharp despite easing.

On prices, input costs fell for the fourth straight month, signaling gradual stabilization, while factory gate prices declined for the 22nd month, albeit at the slowest pace since August 2024.

Finally, business sentiment improved as manufacturers grew optimistic, but growth expectations remained below average, reflecting uncertainty.



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