Austrian Manufacturing Sector Contraction Eases

2025-07-29 08:12 By Czyrill Jean Coloma 1 min. read

The UniCredit Bank Austria Manufacturing PMI rose to 48.2 in July 2025 from 47.0 in the previous month.

The improvement was largely driven by an increase in output in two of the past three months, with the latest growth being the strongest seen in over three years.

However, manufacturers continued to face a lack of new incoming orders, citing elevated levels of uncertainty and ongoing weakness in the construction sector.

Moreover, employment levels declined further, with July data showing a notable reduction in staffing at the beginning of the third quarter, reflecting limited progress in clearing backlogs.

On the price front, input costs registered its first rise in three months, though the increase remained modest by historical standards.

Lastly, the July survey showed a strong rise in business confidence, with growth expectations reaching its highest level since February 2022 amid hopes of economic recovery and the EU-US trade agreement.



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