Austrian Manufacturing PMI Highest Since 2022

The UniCredit Bank Austria Manufacturing PMI climbed to 52.4 in March 2026 from 49.4 in February, its highest since May 2022, signaling a return to expansion. The improvement was driven by stronger output and new orders, with demand rising for a second straight month at the fastest pace in nearly four years. Firms noted that some customers brought forward purchases and built buffer stocks amid supply disruption risks linked to the Middle East conflict. On the other hand, inflationary pressures intensified, with input costs posting a record increase and reaching their highest level since October 2022 amid surging energy, fuel, and transport prices. Firms raised output charges at the fastest pace in over three years. Employment continued to decline, though at a slower pace. Looking ahead, business confidence weakened to a six-month low amid concerns over future demand and rising prices, though sentiment remained positive overall.

The UniCredit Bank Austria Manufacturing PMI rose to 49.4 in February 2026 from 47.2 in January, marking its highest level since November 2025, driven by the first growth in new work in nearly four years. Manufacturers recorded a renewed rise in new orders, helping to stabilize output even as overall production remained largely unchanged. Meanwhile, firms continued to cut employment and purchasing activity amid cost pressures, with input costs rising at the fastest pace in over three years and output prices increasing for the first time since April 2025. In addition, supplier lead times lengthened further due to material shortages and shipping delays. Looking ahead, sentiment was notably upbeat, with 12-month activity expectations at their highest since January 2022, reflecting optimism over market conditions and new product plans.

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.