Austria: Manufacturing PMI drops to 16-month low in May
The UniCredit Bank Austria Manufacturing Purchasing Managers’ Index (PMI) eased to a 16-month low of 56.6 in May from 57.9 in April. That said, the index still signaled a strong improvement in operating conditions, despite the country’s close ties to the Russian economy. The index remained handsomely above the neutral 50-threshold that separates an overall improvement in conditions from a deterioration compared to the prior month.
May’s downtick, however, was driven by the first contraction in new orders in nearly two years: A further rise in price pressures and greater economic uncertainty dampened domestic and foreign demand. On the other hand, output picked up pace thanks to greater employment and targeted efforts to reduce backlogs of work. Consequently, stocks of finished goods rose. Less positively, supply chain problems persisted as many firms reported delays in receiving material inputs. Meanwhile, inflationary forces remained strong, as input and output price inflation remained near record-high levels in the month.