FX.co ★ Austrian Manufacturing Sector Contraction Eases

In July 2025, the UniCredit Bank Austria Manufacturing PMI increased to 48.2, up from 47.0 in the preceding month. This improvement was primarily attributed to a rise in output for two out of the last three months, marking the most significant growth experienced in over three years. However, manufacturers continued to grapple with a shortage of new orders, citing heightened uncertainty and persistent challenges in the construction sector. Furthermore, employment figures suffered a further decline, as July data indicated a significant reduction in staffing levels at the outset of the third quarter, highlighting limited advancement in clearing backlogs. On the pricing front, input costs saw their first increase in three months, although the rise was modest by historical measures. Finally, the July survey revealed a substantial boost in business confidence, with growth expectations soaring to their highest point since February 2022, driven by hopes of economic recovery and optimism surrounding the EU-US trade agreement.