The UniCredit Bank Austria Manufacturing PMI fell to 47.6 in September 2025 from 49.1 in August, marking a three-month low. The decline was driven by a renewed drop in output, which contracted for the first time in three months, and a sharper fall in new orders linked to US tariffs, customer uncertainty, and foreign competition. Export sales also registered their steepest decline since June. Firms reduced backlogs of work and accelerated job cuts, with employment falling for the 29th consecutive month at the fastest pace since June. Purchasing activity and inventories were scaled back further, while supplier delivery times continued to lengthen amid reduced capacity and shortages. Input prices rose at the quickest rate since January 2023, yet output charges fell for a fifth straight month as weak demand forced discounting. Business confidence remained positive but sank to its lowest level since March, as growth expectations weakened.
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