Surveys among industrial companies show a significant improvement of the business climate both in Austria and the euro area. Positive incentives are coming mainly from strong economic growth in the USA and in Asia, in spite of the strong euro exchange rate. Companies in manufacturing report a recovery in export orders and expect a noticeable revival of production. In the construction sector, the improvement in civil engineering is being followed by a pick-up of residential building. Despite an overall stable price level and higher real incomes, demand from private households was modest over the summer. No upturn is as yet visible on the labour market.