BRUSSELS (dpa-AFX) - Austria's factory growth moderated in April amid renewed contractions in output and new orders due to the growing impact of the Middle East War on prices and supply chain conditions, survey results from S&P Global showed on Tuesday.
The UniCredit Bank Austria Manufacturing Purchasing Managers' Index dropped to 51.2 in April from 52.4 in March, which was the strongest level in nearly four years. However, a score above 50.0 indicates expansion in the sector.
Both output and new orders decreased for the first time in three months, and there was also a marginal decline in export sales.
On the price front, input cost inflation accelerated to the highest since September 2022, led by higher costs for energy, raw materials, and transportation. As a result, selling price inflation rose to the strongest since January 2023.
The survey highlighted worsening supply-chain disruptions in April, linked to the fallout from the war in the Middle East. Average lead times on inputs lengthened to an extent not seen since mid-2022, amid reports of supply bottlenecks and logistics issues.
Austrian manufacturers raised stocks of purchases for the first time in over three years amid combined concerns of supply disruption and inflationary pressures. They also reduced factory employment at an accelerated pace.
Looking ahead, business confidence weakened markedly in April, with the index falling to the joint-lowest since March 2025.
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