The UniCredit Bank Austria Purchasing Managers’ Index (PMI) rose from a nearly two-year low of 51.2 in June to 51.7 in July. Thus, the index rose above the neutral 50th threshold, which separates the general improvement in conditions from the deterioration in conditions compared to the previous month.
The rise came despite another drop in production as new domestic and overseas orders fell due to higher commodity prices. Procurement activity also declined as inventories were adequately stocked and work in progress decreased. Moreover, job creation was the slowest in nearly 18 months. Inflation of input and output prices declined but remained high nonetheless. Meanwhile, business sentiment has cooled amid fears of a recession.
FocusEconomics experts predict that fixed investment will grow by 1.8% in 2022, which is higher than last month’s forecast. The Group forecasts fixed investment growth of 1.6% in 2023.