Austria Manufacturing Slips Back Into Contraction as War-Linked Costs Surge

Austria’s manufacturing sector lost momentum in April, reversing gains seen in March when the headline PMI reached 52.4, a near four-year high. Data from UniCredit Bank Austria and S&P Global showed the PMI fell to 51.2, signaling weaker growth. Output and new orders both declined for the first time in three months, while export sales also dropped. Firms cited earlier demand strength as partly driven by customers bringing forward orders ahead of expected price increases. Rising costs tied to the Middle East conflict intensified pressure. Input cost inflation hit its highest since September 2022, driven by energy, raw materials, and transport. Supply disruptions lengthened delivery times sharply, prompting firms to build safety stocks. Confidence weakened significantly, with expectations for future output falling for a second month.