Austria: PMI drops to near seven-year low in September
Business conditions contracted at an accelerated pace in September, with the UniCredit Bank Austria Manufacturing Purchasing Managers’ Index (PMI) dropping from 47.9 in August to 45.1 in September, the lowest level in nearly seven years. The PMI consequently moved further south of the 50-threshold that separates contraction from expansion in the manufacturing sector.
The latest downturn was driven by another slump in new orders, which dropped for the ninth month running, owing to postponement of orders and a slowdown in the domestic and global economy—new export orders also fell, particularly due to the weakness in the German car industry. As demand dynamics weakened, production fell at the strongest pace in nearly seven years driven by dropping output across the sector and purchasing activity eased markedly. Moreover, manufacturing jobs were shed for the third consecutive month and employment fell at a near-decade quick pace. This, in part, reflected a darkened outlook on business expectations, which reached the lowest level in nearly seven years.