The UniCredit Bank Austria Manufacturing PMI fell to 47.0 in June 2025 from 48.4 in May, slipping deeper into contraction territory and marking a setback after May’s brief improvement in business conditions. Output dropped again after growing for the first time in three years, as weak demand continued to hold back performance. New orders and export sales declined more quickly, with companies noting hesitant customers and unused capacity. Employment dropped at the steepest pace since March, as manufacturers stepped up job cuts to align staffing with weak workloads. In terms of prices, output costs declined for a second straight month, driven by competitive pressures and lower input costs, though the pace of reduction eased slightly from May. Despite the downturn, sentiment remained broadly positive, supported by hopes for improved economic conditions.