Financial News: Austria Factory Growth Strongest Since May 2022

Austria Factory Growth Strongest Since May 2022

03/27/2026 - 08:43:00 (RTTNews)

(RTTNews) - Austria's manufacturing activity expanded at the quickest pace in nearly four years in March as output and new orders were boosted by supply disruption concerns linked to the Middle East war, survey results from S&P Global showed Friday.

The UniCredit Bank Austria Manufacturing Purchasing Managers' Index climbed to 52.4 in March from 49.4 in February. A score above 50.0 indicates expansion in the sector.

Despite increasing inflationary pressures, Austrian manufacturers reported stronger growth in both output and new orders, as some firms remarked on customers seeking to mitigate supply disruption caused by the Middle East war, the survey highlighted.

New orders grew at the fastest pace in almost four years, and export demand rose only the second time in nearly four years amid increased demand from Germany.

In line with growing new orders, firms raised output volume, and the latest growth was the quickest since November 2025.

In order to build safety stocks together with higher production requirements, they also increased purchasing activity sharply. However, factory employment dropped further, and the rate of job shedding was the weakest for three months.

On the price front, input price inflation accelerated to the highest level since October 2022, driven by a surge in energy, fuel, and transportation prices linked to the Middle East crisis. Consequently, selling price inflation rose to a 37-month high.

Looking ahead, output expectations over the next 12 months sank to their lowest level since September 2025 due to concerns about future demand and price increases.

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