Austria: Manufacturing PMI jumps to record-high in June
June 28, 2021
Operating conditions in Austria manufacturing sector continued to improve at breakneck speed, with the UniCredit Bank Austria Manufacturing PMI jumping to 67.0 in June from 66.4 in May. Consequently, the index moved further above the neutral 50-threshold that separates expansion from contraction in the manufacturing sector compared to the prior month as the sector gained traction.
The improvement in the headline reading was driven by unprecedented growth in order book volumes amid stronger demand at home and abroad as lockdown measures were eased and investment spending resumed. Despite this, output growth slowed amid supply bottlenecks. Consequently, supplier delivery times lengthened and backlogs of work rose steeply. All said, input cost and output price inflation rose to new record highs amid the imbalance between supply and demand. Lastly, sentiment levels remained markedly positive as manufacturers hope for a sustained recovery in demand in the year ahead and expect supply side pressures to cool.