UniCredit Bank Austria’s Manufacturing Purchasing Managers’ Index (PMI) rose from a nearly two-year low of 51.2 in June to 51.7 in July. Thus, the index moved over the neutral 50 threshold that separates an overall improvement in conditions from a deterioration in conditions, compared to the previous month.
The rise came despite another drop in production as new domestic and foreign orders fell, due to higher commodity prices. Purchasing activity has also been curtailed as inventories are adequately stocked, while backlog has decreased. Moreover, job creation was the slowest in nearly 18 months. Input and output price inflation eased, but remained high nonetheless. Meanwhile, business sentiment plummeted amid fears of a recession.
FocusEconomics panelists expected fixed investment to expand 1.8% in 2022, which is the same as last month’s forecast. The committee sees steady investment growth of 1.6% in 2023.