FX.co ★ Austria Manufacturing Downturn Continues In April

Manufacturing activity in Austria continued its trend of deterioration in April, according to data produced by S&P Global and released on Friday. The downturn in the sector did show signs of slowing, as evidenced by less pronounced decreases in both output and new orders.

S&P Global's data was reflected in the UniCredit Bank Austria Manufacturing Purchasing Managers' Index, which sat at 43.5 in April, an improvement from 42.2 in March. It's important to note that any score under 50 signals a contraction in the sector.

April marked the fourth consecutive month where the decline in output eased. In a similar vein, April also witnessed the slowest rate of decreases in new orders since July 2022.

In terms of employment, the manufacturing sector still saw a significant decline, driven by weak demand conditions. Though the rate of job losses did appear to slow somewhat.

Interestingly, the rate of purchasing activity increased at the most rapid pace seen in three months. This acceleration was seen as a result of ongoing efforts to reduce pre-production inventories. Firms have reported lower production requirements and better material availability as contributing factors.

In regards to pricing, the cost of input continued its downward trajectory in April. This marked the slowest rate of decrease in the last year. Simultaneously, the decrease in output prices was substantial, propelled by robust competition for new work.

Despite these conditions, manufacturers remain optimistic about future outputs. They attribute this positivity to anticipated improvements in investment and generally favourable economic conditions.