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2020.01.2908:16:00UTC+00Austria's Manufacturing Sector Contracts At Slower Pace

Austria's manufacturing sector shrank at the slowest pace in nine months in January, survey results from IHS Markit showed Wednesday.

The headline UniCredit Bank Austria manufacturing Purchasing Managers' Index rose to 49.2 in January from 46.0 in December. Although this was the highest score in nine months, a reading below 50 indicates contraction.

The rate of decline in new orders was the weakest in this sequence of contraction as export orders grew for the first time in 16 months. At the same time, output showed almost no change from the month before.

Manufacturing employment decreased at a slower pace and there were further reductions in both pre- and post-production inventories.

The combination of strong competition for new work and lower input costs led manufacturers to reduce output charges for the seventh month in a row. The rate of decline was the fastest since last September.

Looking ahead, January's survey showed manufacturers' confidence towards future output reached its highest since September 2018.

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