FX.co ★ Austria Manufacturing Downturn Deepens

UniCredit Bank Austria's Manufacturing PMI decreased to 47.6 in September 2025, down from 49.1 in August, hitting a low for the past three months. This decrease was primarily due to a renewed decline in output, which contracted for the first time in the last three months. The reduction was influenced by a sharper decrease in new orders, attributable to U.S. tariffs, customer uncertainty, and increased foreign competition. Export sales experienced their most significant drop since June. Companies responded by reducing work backlogs and accelerating job cuts, marking the 29th consecutive month of employment decline, with the fastest rate of reduction since June. Additionally, purchasing activities and inventories were further reduced, while supplier delivery times continued to stretch due to diminished capacity and shortages. Input prices increased at their fastest pace since January 2023, yet output charges decreased for the fifth month in a row as weak demand necessitated discounting. Business confidence remained optimistic yet fell to its lowest point since March, as expectations for growth diminished.