2026.01.2810:00:55UTC+00Austria Manufacturing PMI Falls to 7-Month Low

In January 2026, the UniCredit Bank Austria Manufacturing PMI dropped to 47.2 from 49.3 in December, marking its lowest point since June 2025. This decline in the index is attributed to decreased production, experienced for the first time in four months, largely due to diminished international demand. Furthermore, new orders saw a significant drop for the second consecutive month, recording the most rapid decrease since June 2025. This downturn was primarily fueled by a substantial reduction in export demand, causing order books to decline after a short-lived recovery in December. Concurrently, employment continued its downward trend, with job reductions accelerating as companies operated below their capacity levels. On the pricing aspect, input costs surged at one of the highest rates observed in nearly three years, mainly due to increasing energy and metal prices. However, output prices continued their downward trajectory for the ninth consecutive month, reflecting intense competitive pressures and resulting in narrower margins. Looking forward, manufacturers maintained cautious optimism regarding future production, although confidence slightly waned from the multi-year peak observed in December.