Austria: PMI improves slightly in November, but remains in contraction mode
November 27, 2014
The manufacturing Purchasing Managers’ Index (PMI) elaborated by Bank Austria improved slightly in November, rising from 46.9 in October to 47.4. Despite the improvement, the manufacturing PMI—the result of a survey of over 300 industrial businesses based in Austria—continues below the 50 threshold that indicates a contraction in business activity in the manufacturing sector.
According to Bank Austria, “despite rising from 46.9 in October to 47.4, the deterioration in operating conditions was marked, and is the second-strongest in over two years.” Austria’s manufacturing sector remained in contraction territory in November, as new orders fell for the sixth consecutive month in November, which reflected that sluggish economic activity continued to weigh on demand. Export orders also declined further, hitting a 20-month low. In addition, output continued to decline in November and, due to weak demand, manufacturers have been forced to cut their labor force in the same month. On price developments, firms reported lower input prices due to a decline in oil and raw material prices.
Author: Ricardo Aceves, Senior Economist