Upturn in Austria’s manufacturing sector slows furtherStaff Writer | August 30, 2016
August data signalled slower growth of both output and new orders at Austrian manufacturers, attributed in part to a decline in foreign demand.
Austria Bank Austria Manufacturing PMI
Manufacturing growth in Austria slowed further during August, as highlighted by the seasonally adjusted Bank Austria Manufacturing PMI falling from July’s 53.4 to a three-month low of 52.1.
Operating conditions have now improved for 17 consecutive months and the latest reading was broadly in line with the average for this period.
The amount of new business received by Austrian manufacturers rose further in August. However, the rate of expansion slowed since July and was among the weakest over the past year. Declining demand from foreign markets weighed on overall new business wins, according to the survey data.
With new order intakes rising only slightly, some companies took a more cautious approach to their production volumes. Output expanded for the seventeenth month running, although at the weakest rate so far in 2016.
Meanwhile, part of the overall rise in demand was satisfied by using existing stock. Consequently, finished goods inventories fell further.
Sector data revealed that deteriorating trends for output and new orders at intermediate goods producers contrasted with further growth in the consumer and investment goods categories. ■