The UniCredit Bank Austria Manufacturing PMI rose to 49.1 in August 2025 from 48.2 in July, marking its highest level since July 2022. The improvement was driven by a solid rise in output, with production volumes expanding at the fastest pace since May 2022. Purchasing activity also recorded the smallest decline in over three years. At the same time, the contraction in new orders moderated, suggesting early signs of demand stabilization, while export sales declined - but at one of the weakest rates since the downturn began in May 2022. Conversely, employment fell for the 28th consecutive month as firms continued to cut costs. On the price front, input prices rose at the fastest pace, while output charges declined for the fourth consecutive month amid competitive pressures. Looking ahead, business confidence remained positive, though it eased slightly from July’s peak. Firms cited expansion plans, product launches, and expectations of an economic upturn as reasons for their optimism.