The UniCredit Bank Austria Manufacturing PMI fell to 47.2 in January 2026 from 49.3 in December, marking a seven-month low.
Production declined for the first time in four months amid weaker international demand.
New orders fell for a second straight month at the fastest pace since June 2025, driven mainly by a sharp fall in export demand, pulling order books lower after a brief improvement in December.
Employment continued to fall, with job cuts accelerating as firms operated below capacity.
Finished goods inventories rose for a fourth straight month, underscoring persistent demand weakness.
On the pricing front, input costs rose at one of the fastest rates in nearly three years, driven by higher energy and metal prices.
In contrast, output prices fell for the ninth consecutive month amid intense competitive pressure, squeezing margins.
Looking ahead, manufacturers remained cautiously optimistic about future production, though confidence eased slightly from December’s multi-year high.