FX.co ★ Austria Manufacturing Downturn Eases In January

In January, Austria's manufacturing sector continued to experience a downturn, albeit at a reduced speed, according to the latest survey results from S&P Global released on Wednesday.

The UniCredit Bank Austria Manufacturing Purchasing Managers' Index climbed to 45.7 in January, up from 43.3 in December. Despite this improvement, any reading below 50.0 continues to indicate a contraction.

Throughout January, declines in output, new orders, purchasing activity, and employment were less severe compared to the previous month.

The overarching decline in demand was largely attributed to customers' cautious stance due to economic concerns. However, it is noteworthy that the reduction in new orders was the smallest since May 2022.

In response to reduced capacity needs, firms further trimmed their workforce in January. Producers were prompted to scale back purchasing activities due to lower production requirements and ongoing efforts to optimize inventory.

On the pricing front, both input costs and output charges decreased at a slower pace during January.

Looking forward, manufacturers have expressed renewed optimism about output expectations for the coming year, partly fueled by the potential for lower interest rates.