Manufacturing output in Austria rose for the fifth consecutive month in July 2026, however a lack of new orders signals ‘weakness in underlying demand’, according to the latest UniCredit Bank Austria Manufacturing PMI from S&P Global.
As the data showed, the headline manufacturing PMI rose from 50.9 in June to 51.5 in July, remaining above the 50-point threshold, with this growth driven by a sharp increase in production – output expanded at its fastest pace since May 2022.
‘Meanwhile, cost pressures facing goods producers in Austria moderated further from May’s recent peak, although they remained elevated by historical standards,’ the report noted. ‘It was a similar picture for supply chain delays, which eased but remained far more widespread than typically seen over the series history.’
New orders
Inflows of new orders fell again in July, with the rate of contraction accelerating to its fastest level since January. This was driven, in particular, by a weakening of export demand, along with other factors.
‘Whilst there were some mentions from surveyed firms of higher demand associated with data centre build-outs, others remarked on difficulties securing new work due to high prices and competition from abroad, as
well as payback from high sales earlier in the year,’ the report noted.
Purchasing activity continued to increase for a fifth consecutive month, although the pace of growth slowed to the weakest of the current expansion, according to the report. Manufacturers continued to build precautionary inventories of inputs amid concerns over supply chain disruptions and further price increases.
Supply chain pressures eased compared with previous months but remained well above historical norms. Companies continued to report delivery delays linked to the conflict in the Middle East and strong demand for electronic components.
Elsewhere, input cost inflation also moderated to a five-month low, although cost pressures remained elevated by historical standards. Manufacturers continued to pass on higher costs through increased selling prices, with factory gate inflation easing from May’s recent peak but remaining strong.
‘More optimistic’
‘Looking ahead, Austrian manufacturers were more optimistic about growth prospects in the coming year in July,’ the report added.
‘Confidence rebounded from a one-and-a-half-year low in June to its highest since immediately before the outbreak of the Middle East conflict in February. Companies that were upbeat about the outlook mentioned hopes of more settled market conditions, as well as opportunities stemming from new products and strategic plans.’ Read more here.
