Austrian Manufacturing PMI Highest Since 2022 | Economic Update

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The UniCredit Bank Austria Manufacturing PMI rose to 52.4 in March 2026 from 49.4 in February, marking its highest level since May 2022 and signaling a return to expansion. The upturn was driven by stronger output and a renewed increase in new orders, with demand rising for a second consecutive month at the fastest rate in nearly four years. Some firms reported that customers accelerated purchases and built precautionary inventories in response to supply chain risks associated with the conflict in the Middle East.

At the same time, inflationary pressures strengthened markedly. Input costs recorded a sharp increase, reaching their highest level since October 2022, reflecting surging energy, fuel, and transport prices. In turn, manufacturers raised their output charges at the fastest pace in more than three years.

Employment continued to fall, albeit at a slower rate. Looking ahead, business confidence slipped to a six-month low, weighed down by worries about future demand and escalating prices, although overall sentiment remained in positive territory.

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