Austrian manufacturing plunges to lowest level in 6m

The Austrian manufacturing sector experienced a sharp downturn in September 2024, with the UniCredit Bank Austria Manufacturing Purchasing Managers’ Index (PMI) falling to its lowest level in six months.

The index registered a reading of 42.8, down from 44.4 in August and well below the average recorded since the current economic downturn began.

The decline in the PMI was primarily driven by a significant contraction in new orders, which panellists attributed to factors such as client hesitation, investment reticence, and weakness in the automotive sector.

The downturn in new orders was exacerbated by a steep drop in new business from abroad, with export sales recording the most marked fall since last October.

In response to the weakening demand, Austrian manufacturers scaled back their output in September. The rate of production contraction accelerated to its sharpest level since January, indicating a significant slowdown in manufacturing activity.

Attribution: S&P Global statement

Subediting: M. S. Salama