The UniCredit Bank Austria Manufacturing PMI rose to 48.8 in October 2025 from 47.6 in September. Output increased slightly, rising for the third time in four months, as firms sought to maintain production levels by working through existing backlogs. New orders declined only marginally, posting the slowest contraction in three and a half years, amid tentative signs of strengthening domestic and external demand. At the same time, export sales followed a similar pattern, slightly slipping amid signs of stabilizing demand from key European trading partners. In contrast, employment contracted at a faster pace, marking the sharpest decline since March, as manufacturers continued to reduce staffing levels in line with weaker overall workloads. Business sentiment improved notably, with confidence reaching its highest level since early 2022, supported by expectations of a gradual recovery in economic conditions across domestic and international markets.