FX.co ★ Austria Manufacturing PMI Falls Back into Contraction

The UniCredit Bank Austria Manufacturing PMI declined to 49.3 in December 2025, down from 50.4 in November, dipping back below the neutral mark after a brief period of expansion—the first in over three years. New orders experienced the most rapid decline in three months, reducing output growth to a minimal level. Additionally, weakened export demand adversely affected overall activity at year-end. Employment continued its downward trend for the 32nd month, albeit with the lowest rate of job losses since mid-2023, partly due to a slight increase in backlogs not seen since May 2022. On the pricing side, input cost inflation remained subdued despite supplier delays reaching their highest point in three years. Meanwhile, manufacturers lowered output prices for the eighth month in succession due to intense competition. Looking to the future, Austrian manufacturers expressed strong optimism regarding production for 2026, with expectations at their highest since early 2022.