Austria Manufacturing Activity Contracts At Slower Pace

(RTTNews) - Austria's manufacturing activity contracted at a slower pace in July as output returned to growth, survey data from S&P Global showed on Tuesday.

The UniCredit Bank Austria Manufacturing Purchasing Managers' Index rose to 48.2 in July from 47.0 in June. However, a score below 50.0 indicates contraction.

Production volumes increased at the strongest pace in more than three years in June but it was only marginal overall. Manufacturers reported a fall in incoming new orders due to heightened uncertainty.

Companies reduced their backlogs of work in July and the pace of fall was the weakest in the current sequence of depletion that stretches back to mid-2022.

There was a sharp reduction in employment in July. Buying levels of manufacturers declined further. Meanwhile, stock of finished goods decreased for the second straight month and lead times on purchases lengthened for a second consecutive month.

Regarding prices, the survey showed that input prices rose for the first time in three months. However, manufacturers refrained from passing on higher costs to customers due to competition.

Growth expectations of manufacturers logged a marked increase in July. Confidence hit the highest since February 2022.