Austria Manufacturing PMI Falls Back into Contraction

The UniCredit Bank Austria Manufacturing PMI fell to 47.2 in January 2026 from 49.3 in the previous month. It marked the lowest reading since June 2025, as production declined for the first time in four months amid weak international demand. Moreover, new orders fell for a second straight month at the fastest pace since June 2025, driven mainly by a sharp fall in export demand, pulling order books lower after a brief improvement in December. At the same time, employment continued to fall, with job cuts accelerating as firms operated below capacity. On the pricing front, input costs rose at one of the fastest rates in nearly three years, driven by higher energy and metal prices. In contrast, output prices fell for the ninth consecutive month amid intense competitive pressure, squeezing margins. Looking ahead, manufacturers remained cautiously optimistic about future production, though confidence eased slightly from December’s multi-year high.

The UniCredit Bank Austria Manufacturing PMI slipped to 49.3 in December 2025 from 50.4 in November, falling back below the neutral threshold after briefly expanding for the first time in over three years. New orders fell at the fastest pace in three months, slowing output growth to a marginal rate, while weaker export demand weighed on overall year-end activity. In addition, employment fell for the 32nd month, though job losses slowed to their weakest since mid-2023, aided by the first modest rise in backlogs since May 2022. On the pricing front, input cost inflation remained low despite supplier delays reaching a three-year high, while manufacturers cut output prices for the eighth consecutive month amid strong competition. Looking ahead, Austrian manufacturers remained optimistic about production prospects in 2026, with expectations reaching their highest level since early 2022.

The UniCredit Bank Austria Manufacturing PMI rose to 50.4 in November 2025, from 48.8 in the previous month. This marked the first move into expansion territory since July 2022, as output grew for the fifth straight month and at the fastest pace in three and a half years, supported largely by strong demand. Consequently, new orders recorded a marginal increase, ending the longest period of decline on record, which had persisted since May 2022. Meanwhile, employment levels continued to fall and remained weak by historical standards, although the rate of decline eased to its slowest since August. On the pricing front, input costs increased for the fifth consecutive month due to rising prices for energy, foodstuffs, and integrated circuits. In contrast, output charges fell for the seventh straight month amid ongoing competitive pressures. Looking ahead, Austrian manufacturers remained optimistic about future production levels, with expectations staying well above the long-run average.