Austria: PMI inches down slightly in September
September 28, 2017
The Bank Austria manufacturing Purchasing Managers’ Index (PMI) inched down from its multi-year high of 61.1 in August to 59.4 in September; however, the index remains high and continued its trend of strong prints. The index also remains above the 50-threshold that indicates an expansion in business activity in the manufacturing sector, where it has remained since April 2015.
Output expanded in September, underpinned by the investment goods sector. New orders also grew, albeit at a slightly more moderate pace than in August. As a result, manufacturing capacity experienced more pressure as backlogs of work rose, inventories waned and supplier delivery times lengthened. Consequently, businesses created more jobs, continuing the over one-year streak of employment growth. In terms of prices, input price inflation rose to a five-month high, whereas output prices eased at the slowest pace in six months, but remained elevated compared to the historical average. The expansion in manufacturing in September was one of the strongest in the history of the survey.
Author: Lindsey Ice, Economist