Austria: PMI improves in February
February 26, 2016
The manufacturing Purchasing Managers’ Index (PMI) elaborated by Bank Austria increased from 51.2 in January to 51.9 in February, which marked the highest reading in four months. As a result, the index remained above the 50-threshold that indicates an expansion in business activity in the manufacturing sector, where it has been resting since April of last year.
According to Bank Austria, February’s improvement mainly came on the back of faster growth of output and new orders. In fact, output recorded the largest expansion in over two years. New business was partly propelled by a recovery in new export orders. While firms’ backlogs of works and buying activity rose in February, inventories dropped. Meanwhile, the pace of job creation slowed to a six-month low. As for price developments, input prices continued to fall for a sixth consecutive month, reflecting low oil prices, but output charges rose marginally because firms partly passed on higher staff costs to clients.