Austria: Manufacturing PMI ticks up in September
At the close of the third quarter, operating conditions in Austria’s manufacturing sector improved at a stronger pace. The UniCredit Bank Austria Manufacturing Purchasing Managers’ Index (PMI) rose to 62.8 in September from 61.8 in August. The index, consequently, moved further north of the neutral 50-threshold that separates expansion from contraction in the manufacturing sector.
The headline improvement reflected the first pickup in output growth in four months thanks to a boost of increased operating capacity and a continued upturn in new orders. However, the fading of post-lockdown catch-up effects saw new orders growth easing to its lowest level since February. Nonetheless, backlogs of work continued to rise in September, despite using post-production inventories to limit the rise in outstanding work. Moreover, material shortages and transport delays carried on and continued to weigh on the sector. Lastly, sentiment levels deteriorated slightly.