Austria's industry: Recession not yet over at the turn of the year!

Austria's industry: Recession not yet over at the turn of the year!

The economic shadows over Austria and Germany are getting darker! Despite hopes of recovery, the reality for the industry in both countries is bleak. Austrian industry is closing 2024 with a massive decline, pushing production levels to the lowest in two years. According to the current analysis by Today.at The industry has been in a relentless recession for two and a half years, and the latest figures from the Purchasing Managers Index confirm this: in December the index fell to an alarming 43.3 points, indicating a relentless decline in production.

UniCredit Bank Austria chief economist Stefan Bruckbauer reported that 40 percent of Austrian industrial companies received fewer new orders. The reasons are a lack of willingness to invest and falling foreign demand, especially from Germany. These concerns are shared with Germany, where the industry is also under pressure. How The mirror informed, German companies have significantly reduced production until the end of the year due to declining orders. In Germany, a production decline of over five percent is expected in 2024, which further increases economic concerns.

The consequences are serious: the cuts in production result in a significant increase in unemployment. Walter Pudschedl, an economist at UniCredit, warned that the unemployment rate in domestic industry could rise to 4.5 percent next year. That would be the highest value since 2020! While companies try to adapt to the dreary situation, the prospect of improvement remains dim and many experts are predicting a very slow economic recovery in 2025. Uncertainties about a trend reversal are growing and the question remains as to how long the industry in both countries can withstand this burden.