In November, the contraction within Austria's manufacturing sector showed signs of easing, attributed to a slowdown in declines in both production and new orders, as per the latest survey from S&P Global.
The UniCredit Bank Austria Manufacturing Purchasing Managers' Index increased to 44.5 in November, marking a six-month high, up from 42.0 in October. Nevertheless, any figure below 50.0 continues to indicate contraction.
While both production and new orders continued their downward trend in November, these reductions occurred at the most gradual rate observed in half a year. Export demand remained weak, yet the decline in export sales slowed to its most moderate in three months.
Concurrent with the decline in work backlogs, companies reduced their workforce numbers at the second highest rate since the early 2020 pandemic shutdowns.
Regarding pricing, both input and output prices declined further in November, reflecting a general weakness in demand throughout the consumer and supply chain sectors. Additionally, selling prices experienced their second steepest drop over the past year.
Looking forward, manufacturers’ outlook on future output showed improvement, though it still lags behind historical averages.
