Austria Manufacturing Sector Remains in Expansion

The UniCredit Bank Austria Manufacturing PMI rose to 51.5 in July 2026, picking up from a four-month low of 50.9 in the previous month. It remained above the 50 threshold for a fifth consecutive month, as output expanded at its fastest pace since May 2022. Meanwhile, new orders declined at the slowest pace since January, though export orders continued to weaken amid challenging external market conditions. On the price front, input cost inflation eased to a five-month low but remained elevated relative to its long-run average. Output price inflation also moderated from May's recent peak. Looking ahead, Austrian manufacturers grew more optimistic about the year-ahead outlook. Business confidence rebounded sharply from a one-and-a-half-year low in June to its highest level since just before the outbreak of the Middle East conflict in February, reflecting expectations of stronger demand and improved economic conditions.

The UniCredit Bank Austria Manufacturing PMI fell to 50.9 in June 2026 from 51.7 in the previous month, marking the lowest level in four months, though it remained above the 50-point threshold. The slowdown reflected weaker demand, with new orders declining for a third consecutive month and at the fastest pace in the current sequence. Export sales also returned to contraction after a marginal increase in May, while production growth eased notably. Meanwhile, manufacturers continued to build input inventories throughout the second quarter. On the price front, inflationary pressures remained elevated but eased from May's recent highs. Input costs continued to rise sharply due to higher energy, transportation, and electronic component prices. Output price inflation also moderated but remained well above its long-run average. Elsewhere, employment fell at the fastest pace since February, while business confidence weakened to an 18-month low amid the continued lack of new work.

The UniCredit Bank Austria Manufacturing PMI rose to 51.7 in May 2026 from 51.2 in the previous month, pointing to a modest improvement across the manufacturing sector. Output saw renewed growth for the third time in the past four months, supported by inventory-building activity and efforts to clear outstanding backlogs of work. Moreover, new orders declined at a softer pace, with some manufacturers reporting advance purchases by clients seeking to avoid expected price increases. On the price front, input costs accelerated at the fastest pace in four years, driven by rising costs for energy, fuel, transportation, oil-related products, and other commodities amid persistent geopolitical tensions in the Middle East. Finally, expectations for output over the next twelve months edged up from April’s seven-month low, although overall confidence remained marginally below the historical average.