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Austrian manufacturing rises to highest in over six years

Staff Writer | April 28, 2017
April survey data indicated the greatest improvement in overall business conditions in the Austrian manufacturing sector for over six years.
Austrian manufacturing
Austria   UniCredit Bank Austria Manufacturing PMI
Rising output and new order growth were key components behind the sector’s strong performance. On the price front, output charges rose sharply and at the highest rate for almost six years, whilst input price inflation eased.

Job creation slowed in comparison to March but remained steep overall. The UniCredit Bank Austria Manufacturing PMI posted 58.1 in April, up from 56.8 in March.

This was the highest reading since March 2011 as the Austrian manufacturing sector continued to enjoy its best period of growth for six years.

Of the three monitored sub-sectors, the investment goods sector recorded the fastest rate of production growth in April and bolstered the overall output performance in the Austrian manufacturing sector.

Strong growth was also seen in the consumer and intermediate goods sectors.

Anecdotal evidence suggested that higher output requirements led manufacturers to increase their buying activity in April. The rate of growth in the quantity of purchases was the fastest seen since March 2011.

Growth of total new orders received was sharp overall and accelerated when compared with the preceding survey. Firms attributed increased demand to economic upturns in Europe.

Austrian manufacturers reported a steep increase in work outstanding. The rate at which backlogs accumulated was the fastest seen for three months.

Latest survey data indicated that job creation remained strong, as almost one-quarter of panellists reported that they had expanded their workforce in April. That said, employment growth eased in comparison to March’s 70-month high.

Austrian manufacturing firms increased their selling prices again in April. Furthermore, the rate of output charge inflation was sharp overall and the highest seen for almost six years.

Companies often reported that they had passed on part of the burden of increased input costs.

Input price inflation eased marginally in April, but remained sharp overall. Panellists reported that raw material prices had increased due to shortages at suppliers.

Pressure on capacity at suppliers was also a key factor behind a rapid deterioration of vendor performance.

Suppliers’ delivery times in fact lengthened to the greatest extent for six years.