The Austrian PMI comes out first among Europe's PMI. It's well correlated to pan-Europe's PMI which is logical given its economy's entrepôt nature. Remember that the PMI is a diffusion index, i.e., it's closer to a rate of change than a level. In other words, even if the PMI is declining, the economy may be advancing, just more slowly.
Austria's PMI fell in October, as did the provisional ("flash") Euro PMI. Key factors according to IHS Markit:
- slowest rise in new orders since January
- longer lead times on materials and components
- output price inflation hits a new record high as cost pressures intensify.
We are still not back to "normal" after the Covid Crash. And normal will mean slower growth than we've seen over the last year, so expect Europe's PMIs to drift lower over the next few months.
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