FX.co ★ Austria Manufacturing PMI at 3-Month Low

UniCredit Bank Austria's Manufacturing PMI registered a drop to 46.6 in April 2025, down from 46.9 in March, reaching its lowest point in three months and marking the 33rd consecutive month of contraction for the sector. The downturn continued to be influenced by a more pronounced decline in new orders, as clients remained cautious due to ongoing economic and geopolitical uncertainties, particularly affecting export demand. However, there were glimmers of improvement, with the rate of output contraction nearing stabilization, marking one of the most modest declines since the downturn began in mid-2022. As a result, the reduction in employment slowed to its least severe pace in nearly two years. On the pricing side, both input costs and factory gate prices increased for the third month in a row, but the rise in cost inflation was the weakest in the current sequence, leading to a slower increase in selling prices compared to March. Looking forward, business sentiment improved significantly, buoyed by optimistic expectations for stronger investment and a broader economic recovery.