Austria’s industrial sector experienced a notable contraction in November, reflecting ongoing pressures from strained global supply chains and fluctuating demand. Manufacturing output dropped by 2.3% compared to the previous month, marking the third consecutive decline this quarter. Disruptions in raw material procurement and delays in logistics remain key obstacles for Austrian industries, particularly in automotive and machinery production. Analysts warn that without significant improvements in supply chain stability, recovery could be further delayed into early 2024.

The downturn impacted several core industrial segments, as highlighted in the table below:

Sector Output Change (Nov 2023) Year-on-Year Growth
Automotive -3.8% +1.2%
Machinery -2.9% -0.5%
Chemicals -1.1% +0.7%
Electronics -2.5% -1.3%

Key challenges facing the sector…