Austria Manufacturing Downturn Continues In March

(RTTNews) - Austria's manufacturing activity deteriorated at a slower pace in March, survey results from S&P Global showed on Thursday.

The UniCredit Bank Austria Manufacturing Purchasing Managers' Index rose to a 25-month high of 46.9 in March from 46.7 in February. However, any score below 50.0 suggests contraction.

Slightly faster decreases in both output and new orders contrasted with moderations in the rates of contraction in both employment and stocks of purchases, the survey said.

The fall in overall demand was due to market uncertainty and generally weak economic conditions along with falling export sales.

Firms reduced workforce numbers in March amid low capacity utilization and efforts to save costs. Nonetheless, the pace of job shedding was the least marked since May 2024. Stock of purchases recorded a softer fall that was the second weakest for two years.

On the price front, input price inflation rose to a 7-month high in March, driven by higher prices for metals such as copper and steel. As a result, manufacturers raised their output charges.

Looking ahead, firms were less optimistic about future output than they were the month before, amid heightened uncertainty levels.