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VIENNA, April 29 (Reuters) - Austria's seasonally-adjusted PMI rose to 39.0 in April from 33.7 in March, as output and new orders declined at a slower pace, according to the Bank Austria Purchasing Managers' Index released on Wednesday.
But despite the slightly stronger figures for output and new orders -- the main factors driving the index -- the general downward trend was still severe as the downturn dampened demand, said Markit Economics, which compiles the survey.
Figures below 50 show a contraction while figures above 50 show growth. The output sub-index, which hit a record low of 31.4 in January, was at 40.6 in April, versus 35.4 in March. This was the slowest rate of decline since October 2008.
"However, the decrease in production was still marked and extended the current period of contraction to eleven months," Markit said in a statement.
In terms of new orders, the pace of reduction was sharp, Markit said. "Though (this) eased markedly to its weakest in seven months and signalled considerable improvement on the severe retrenchments seen around the turn of 2009."
The headline PMI index hit a record low of 33.1 in January.
Austria's gross domestic product started contracting in the last quarter of 2008, the country's first quarterly GDP drop for eight years, but later than elsewhere in the euro zone.
Austria's main economic researchers are expected to lower their outlook for the Alpine economy again. They currently forecast a contraction of 2.2 to 2.7 percent this year as they predict the drop in exports to be even more dramatic than previously expected..
Finance Minister Josef Proell told Reuters over the weekend that Austria will revise down its deficit forecasts for this year and next after a downwardly revised outlook for German gross domestic product.
The German economy, a key driver of Austrian growth in 2006 and 2007, will contract by 6 percent this year according to leading German think tanks. Germany takes a third of Austria's exports.
The PMI index is based on a survey of 300 Austrian companies carried out by Markit Economics for Bank Austria. It is modelled on the closely-watched U.S. Institute for Supply Management (ISM) index.
(Reporting by Sylvia Westall; Editing by Victoria Main)