Austria: PMI eases from record high level in January
February 1, 2018
The Bank Austria manufacturing Purchasing Managers’ Index (PMI) fell to 61.3 points in January, down from the previous month’s record high of 64.3. The index remained, however, firmly above the critical 50-threshold that indicates expansion in business activity in the manufacturing sector. The Austrian manufacturing sector has remained in expansionary territory for 34 consecutive months.
Growth in output, new orders, exports and employment remained solid, while purchasing activity increased at a record-high level. New orders, both domestic and foreign, increased markedly in January despite easing from December’s record pace. Foreign orders hinted at strong demand from European neighbors. Employment grew at the fourth-fastest rate since the survey began in 1998, but backlogs of work continued to grow quickly. This was partly due to supply chains remaining under pressure as delivery times increased. In terms of prices, input price inflation was strong, and as a result output prices also rose markedly.
Output expectations eased slightly from the previous month but remained buoyant on ongoing improvements in the domestic, Eurozone and global economies.
Austria Fixed Investment Forecast
FocusEconomics Consensus Forecast panelists expect gross fixed investment to rise 3.2% in 2018, which is up 0.3 percentage points from last month’s forecast. The panel sees investment growth of 2.3% in 2019.
Author: Jan Lammersen, Economist