Austria: PMI remains strong despite mild drop in July
July 28, 2016
In July, the manufacturing Purchasing Managers’ Index (PMI) produced by Bank Austria tallied 53.4, which was down from June’s multi-year high of 54.5 The index remained above the 50-threshold—that indicates an expansion in business activity in the manufacturing sector—where it has been since April last year.
According to Bank Austria, operating conditions in the manufacturing industry improved further in July. Survey participants indicated that demand came mainly from the domestic market in July, after the boost in foreign demand seen in June. While companies increased their purchasing activity in July, they were also more cautious not to overestimate the required stock levels of finished goods. Overall, output expanded in July but at a slower rate than that seen in June.
Moreover, firms reported a further increase in employment levels. They also stated that input prices increased for the second month running albeit only marginally. However, companies were not able to roll these higher costs over to sales prices, which they had to decrease amid high competitive pressure.