Manufacturing growth in Austria strongest in over six years
Staff Writer |
June’s PMI survey signalled the strongest improvement in business conditions in the Austrian manufacturing sector for over six years.
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A near record high in output growth, steep rises in new orders (both domestic and export) and strong job creation all contributed to the upturn.
Meanwhile, high raw material prices continued to drive input and output price inflation, with both remaining above their respective historical averages despite easing since May.
The UniCredit Bank Austria Manufacturing PMI – a composite indicator designed to provide a singlefigure snapshot of manufacturing performance – posted 60.7 in June, up from 58.0 in May.
The result signalled the steepest expansion in the Austrian manufacturing economy since February 2011.
Production grew at the fastest rate in over seven years during June.
Output expansions were broadbased across the three monitored goods categories, with the fastest rate of growth seen among investment goods producers.
Panellists noted that an economic upturn had led to higher demand for Austrian produced goods.
The latest rise in new orders was the steepest seen for over six years.
Demand for goods came from both domestic and export markets in June, with new orders from abroad also registering marked growth.
Anecdotal evidence suggested that an economic upturn in central Europe led to increased client demand.
Employment growth accelerated in the latest survey, with the latest expansion in payroll numbers being steep overall.
Many respondents reported that they had employed more staff to keep up with production demands.
Input price inflation in the Austrian manufacturing sector remained sharp in June.
Firms commonly noted that rising raw material costs continued to increase their average cost burden.
Output prices also rose, but to a lesser extent.
Firms sometimes noted that they had passed on part of the burden of increased input costs.
That said, both output and input price inflation eased further from recent highs.
In June, delivery times slowed to the greatest extent in over six years.
This followed the trend of deteriorating vendor performance that has been seen over the past 47 months.
There was a sharp expansion in buying activity registered in the Austrian manufacturing sector in the latest survey.
Panellists noted that they had increased their volume of purchases in order to meet rising production requirements.
Anecdotal evidence showed a link between higher input demand and the deterioration in delivery times.
Finally, sentiment towards future output growth prospects remained strong in June.
Companies attributed confidence to new projects and increasing investment. ■