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The UniCredit Bank Austria Manufacturing PMI slipped to 50.9 in June 2026 from 51.7 in May, the lowest reading in four months, though it remained above the 50-point threshold that separates expansion from contraction. The loss of momentum was driven by weaker demand: new orders declined for a third consecutive month and at the fastest rate in the current downturn. Export sales also fell back into contraction after a marginal increase in May, and growth in output slowed markedly.
Despite softer demand, manufacturers continued to build input inventories throughout the second quarter. On the price front, inflationary pressures stayed high but eased from May’s recent peak. Input costs rose sharply again, reflecting higher prices for energy, transportation, and electronic components. Although output price inflation also moderated, it remained well above its long-run average.
Elsewhere in the sector, employment declined at the fastest pace since February, and business confidence weakened to an 18‑month low, weighed down by the persistent shortfall in new work.