Austria‘s manufacturing sector recorded a ‘renewed rise’ in new orders in February 2026, according to the UniCredit Bank Austria Manufacturing PMI survey produced in partnership with S&P Global.
The headline Purchasing Managers’ Index (PMI) increased to 49.4 in Austria in February, up from 47.2 the previous month. This was the highest level for the index in three months, driven by the return to growth in new orders.
‘Retrenchment mode’
Despite the positive shift, many goods producers remain in ‘retrenchment mode’, the report noted, anticipating further cuts to both purchasing activity and employment levels.
Price pressures have also increased, with input costs rising at the fastest rate in more than three years, and output charges rising for the first time since April 2025.
With manufacturers reducing their purchasing activity, buying levels and pre-production inventories have now been falling for 44 months, while stocks of purchases have decreased for 36 months, although the ‘latest decrease in stocks of purchases was only modest and one of the weakest in the current sequence of decline,’ according to the survey.
Workforce numbers also declined, at their fastest rate of contraction in four months, in line with a trend that has been evident since May 2023. Manufacturing firms cited cost-cutting measures as a key contributing factor to staff reductions.
‘Increasingly optimistic’
Nonetheless, looking ahead, manufacturers were ‘increasingly optimistic’ about activity levels over the coming 12 months, with outlook expectations at their highest level since January 2022.
‘February’s survey results signalled a notable improvement in business expectations across the manufacturing sector to the highest in just over four years,’ the survey noted. ‘Firms reported hopes of an improvement in market conditions, including in the construction sector, alongside plans for new products.’
The UniCredit Bank Austria Manufacturing PMI survey is based on responses from a panel of around 300 manufacturers across Austria. Data was collected between 10 and 20 February 2026. Read more here.
