Austria: PMI remains entrenched in contractionary territory in November
November 27, 2019
Business conditions in Austria contracted at a slightly softer pace in November as the UniCredit Bank Austria Manufacturing Purchasing Managers’ Index (PMI) ticked up from 45.5 in October to 46.0. The index, however, remained firmly south of the neutral 50-threshold that separates contraction from expansion in the manufacturing sector; the index, moreover, remained in contractionary territory for the eight-consecutive month.
November’s print reflected notable drops in output, new orders and employment. Production has fallen for seven months straight on the back of a steeper drop in output of intermediate and investment goods. Demand dynamics have been weakened by lingering external headwinds and uncertainty, while troubles in the European car industry also played their part. Slightly more positive was the softer drop in new export sales in November. However, jobs were shed for the fifth month running in reaction to demand weakness.
On the other hand, business sentiment regarding output in the year ahead returned to optimism for the first time since July.
Author: Jan Lammersen, Economist