Austria's manufacturing sector experienced significant deterioration at the year's end as both output and new orders continued to decline at an accelerated pace, according to the latest survey results from S&P Global released on Friday.
The UniCredit Bank Austria Manufacturing Purchasing Managers' Index fell to 43.3 in December, down from 44.5 in November. Any reading below 50.0 indicates a contraction in the sector.
In December, new orders decreased at a quicker rate, attributed to a diminished appetite for investment, decision-making delays, and customer insolvencies.
Consequently, manufacturers curtailed production levels. Additionally, producers lowered inventory levels due to reduced consumer demand and decreased production needs.
Further declines in new export orders were primarily driven by reduced customer spending in major markets, notably Germany.
There was a notable drop in factory employment in December, with the rate of job cuts being the most significant in the current 20-month period.
Regarding pricing, input costs declined further in December, while selling prices continued to decrease at a faster rate.
Looking ahead to 2025, the outlook remains bleak, with a slightly higher number of firms expecting a drop in output over the next 12 months compared to those anticipating an increase.
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