Austria: Manufacturing PMI drops in October
October 27, 2021
Operating conditions in the Austrian manufacturing sector expanded at a softer clip at the outset of the fourth quarter, with the UniCredit Bank Austria Manufacturing Purchasing Manager’s Index (PMI) dropping to 60.6 in October from 62.8 in September. However, the index remained handsomely above the neutral 50-threshold that separates expansion from contraction in the manufacturing sector.
The downtick came on the slowest rise in new orders and output since the start of the year: Supply-side bottlenecks continued to hamper production, while they also affected demand, particularly from the automotive sector. Moreover, material shortages and transportation issues drove a further lengthening of supplier delivery times in the month. Meanwhile, cancelled or postponed orders resulted in the first rise in stocks of finished goods in 16 months. Turning to prices, input costs rose sharply due to material shortages, pricier transportation and higher energy costs. In turn, output prices rose at an unprecedented pace in the month, with firms looking to safeguard margins. Lastly, optimism eased somewhat in the month.