BRUSSELS (dpa-AFX) - Austria's manufacturing growth slowed in February to its lowest level in over three years, driven by a sharp fall in new export orders and slower growth in output and employment, survey data from IHS Markit showed on Tuesday.
The headline UniCredit Bank Austria Manufacturing purchasing managers' index, or PMI, fell to 51.8 in February from 52.7 in January. Any reading above 50 indicates expansion in the sector.
The latest reading was the lowest in last 37 months. The month-on-month fall in the index was mainly due to the supplier delivery times component, which showed the least marked deterioration in vendor performance since April 2016, IHS Markit ssaid.
New export orders fell the most since October 2012, which lead to a drop in overall order books for the second straight month. Output grew at a slower pace.
The dichotomy between output and new orders caused backlogs of work to fall during February.
The employment growth eased for the third month to its weakest since May 2016.
On the price front, the purchasing costs increased due to higher energy prices, wage pressures, and lower prices for steel and paper products. However, cost inflation was the slowest in 28 months.
Factory gate inflation eased for the third straight month to the lowest since December 2016.
'Austria's manufacturers remained cautiously optimistic towards the outlook, citing positive expectations for new products and entry into new markets, but also concerns towards an economic slowdown,' IHS Markit said.
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