The UniCredit Bank Austria Manufacturing PMI rose to 54.4 in August 2026 from 51.5 in July, reaching its highest level since May 2022 and remaining above the 50 threshold for a sixth consecutive month. Output expanded for a fourth straight month at its fastest pace since January 2022, while new orders recorded their strongest growth in four-and-a-half years, supported by solid domestic and export demand. Employment increased for the first time in more than three years, and business confidence reached its highest level since just before the outbreak of the Middle East war in February. Austria’s manufacturing performance stood above the eurozone average, despite pressure from the European Central Bank’s tightening cycle and wider global headwinds. The sector benefited from its diversified export base and demand for machinery, vehicles, and chemical products, although supply-chain disruptions, energy costs, geopolitical uncertainty, and the survey-based nature of the PMI remain risks to the recovery. Input-cost inflation edged up for the first time in three months, while output-price inflation accelerated but stayed below its May peak.