Austria: PMI reaches five-year high in June
June 29, 2016
In June, the manufacturing Purchasing Managers’ Index (PMI) produced by Bank Austria tallied 54.5, which was well above May’s 52.0 and the highest print seen in five years. The index has been above the 50-threshold—that indicates an expansion in business activity in the manufacturing sector—since April of last year.
According to Bank Austria, all of the indicator’s subcomponents improved in June. Survey participants indicated that demand from foreign markets increased strongly in June after having been subdued since last autumn. Domestic demand also rose healthily in June, causing a surge in new orders and production. As a result, the output component of the index recorded a strong gain over the previous month.
The boost in output led to a faster expansion of employment levels in comparison to May. In addition, input prices increased for the first time in nearly a year in June although the industrial firms were not able to roll these higher costs over to sales prices, which resulted in a decline in profits for the firms.