Austria: Business conditions improve at a faster clip in November, but concerns drive outlook sentiment down
November 28, 2018
The Bank Austria Purchasing Managers’ Index (PMI), released by IHS Markit, rose from a two-year low of 53.8 in October to 54.9 in November. The print, marking the first increase in four months, moved north of the neutral 50-point mark that separates expansion from contraction in Austria’s manufacturing sector. It al remained above the long-term average of 52.3 and marked the 44th consecutive month in which business conditions in the sector improved.
The increase in the headline figure came on the back of upticks in output growth; new orders; employment; stocks of purchases; and a stronger deterioration in supplier delivery times. While output growth rebounded from over two-year lows in September and October, new orders from abroad dropped for the second consecutive month and highlights that new orders grew on robust domestic demand dynamics. Increased demand for materials kept input price cost inflation elevated, which was passed on to consumers as output prices rose markedly.
Lastly, business confidence fell to its lowest level since February 2015 and reflected increased concerns over a general economic slowdown and troubles in the automotive sector.
Austria Fixed Investment Forecast
FocusEconomics Consensus Forecast panelists expect gross fixed investment to rise 2.7% in 2019, which is up 0.2 percentage points from last month’s forecast. The panel sees fixed investment growth of 2.2% in 2020.
Author: Jan Lammersen, Economist