Business activity has clearly lost momentum since the beginning of the year. Stimulus from exports, which has supported economic growth last year, is fading, while private household demand is still not showing the hoped-for recovery. The business climate in manufacturing has weakened, albeit not as much as in the euro area. Only the tourism and the construction sector see their situation improving. The rate of inflation is barely falling, due to high energy prices and a number of domestic factors, and unemployment remains on an upward trend.