In a notable economic turnaround, Austria's manufacturing sector has shown signs of recovery with the Bank Austria Manufacturing Purchasing Managers' Index (PMI) rising to 50.4 in November 2025. This marks a significant improvement from October's reading of 48.8 and suggests a shift from contraction to modest expansion in the manufacturing industry, as any PMI above 50 indicates growth.
The uptick in the PMI is a welcome development after the sector had been grappling with contraction pressures. The latest increase reflects improved business conditions, driven by a more robust demand environment and stabilizing supply chain dynamics. Manufacturers have reported a moderate increase in new orders, pointing to rising confidence in the industry despite various global economic headwinds.
The data, updated on 26 November 2025, will likely bring cautious optimism among Austrian manufacturers and policymakers, as the sector looks to regain momentum going into the new year. This advancement may offer a positive ripple effect across the economy, potentially leading to increased production capacity and employment in the coming months.
