FX.co ★ Austrian Manufacturing Sector Downturn Eases

The UniCredit Bank Austria Manufacturing PMI experienced an increase for the third month in a row, reaching 46.9 in March 2025, up from 46.7 the previous month. This represents the highest figure since February 2023, though output contraction remains among the mildest since the downturn began in mid-2022. New orders continued to fall, albeit at a slower pace, with ongoing market uncertainties and sluggish demand contributing to the decline. Employment figures continued to show a sharp decrease, driven by low capacity utilization and cost-cutting efforts. Regarding pricing, input costs rose for the second consecutive month, hitting a seven-month peak, primarily due to higher prices for metals such as copper and steel. As a result, output charges increased, breaking a pattern of discounting that had persisted since April 2023. Looking ahead, manufacturers' growth expectations have worsened, with sentiment significantly dropping from the seven-month high observed in the previous month.