Data provided by S&P Global on Tuesday indicated a continued decline in Austria's manufacturing activity in February due to a slump in new order inflows.
The UniCredit Bank Austria Manufacturing Purchasing Managers' Index confirmed this, showing an unchanged score of 43.0 in February, the same as January. The score signals contraction within the sector since it falls below the 50 mark.
February saw a decrease in output for the twenty-first consecutive month, though this downgrade happened at the slowest rate seen in the last ten months. A moderation in new order declines was also notable, which fell at the slowest pace in a year.
With regard to pricing, input costs have persisted in falling in February, primarily due to a reduced demand for materials and suppliers providing associated discounts. Regardless, the decline rate did soften due to the impact of disruptions in the Red Sea leading to increased freight prices.
There was a drop in selling prices, albeit at a lower rate, which only registered a marginal decline - the weakest since April 2023.
In February, manufacturers began reducing their staff numbers, marking the fastest rate of job cuts since May 2020.
Optimism about future output was maintained among goods producers, who are hopeful about monetary easing and a rebound in economic conditions in the coming 12 months.
