Austria: Manufacturing PMI drops to 10-month low in November; conditions still improve
Operating conditions in the Austrian manufacturing sector expanded at a softer clip in November, with the UniCredit Bank Austria Manufacturing Purchasing Managers’ Index (PMI) cooling to 58.1 in November from 60.6 in October, marking the weakest reading since January However, the index remained comfortably above the neutral 50-threshold that separates expansion from contraction in the manufacturing sector.
The moderation came on the back of marginal growth in production and new orders; however, strong employment, stocks of purchases growth and a notable lengthening of supplier delivery times limited the headline drop. Supply bottlenecks weighed heavily on production and drove customers to cancel or postpone projects. A new wave of Covid-19 also provided headwinds. Turning to prices, input inflation continued to rise amid an imbalance between supply and demand for inputs in conjunction with greater price pressures. Consequently, output prices rose steeply.