Austria: Manufacturing PMI cools in April
Despite the Austrian economy’s links with Russia and its export-driven manufacturing sector, operating conditions in the sector continued to improve at a strong pace in April. The UniCredit Bank Austria Manufacturing Purchasing Managers’ Index (PMI) eased to a 15-month low of 57.9 in April from 59.3 in March. That said, the index remained handsomely above the neutral 50-threshold that separates an overall improvement in conditions from a deterioration compared to the prior month.
April’s downtick was driven by the softest growth in production and new orders in five months, while inflationary pressures continued to build. The war in Ukraine has disrupted supply chains, causing material and component shortages, weighing on productive capacity and pushing up cost pressures. Increased uncertainty due to the war weighed on foreign demand, with export sales growth slowing markedly. Concerns resulting from the conflict also drove a further rapid buildup of safety stocks, as purchasing activity increased.