Economic activity resumed its upward trend in early 1989. Industrial output in the first two months rose 9 percent year-on-year and the backlog of orders became higher. The decline in industrial employment has come to a halt and firms have even started to increase their work force. Overall employment is more than 50,000 higher than a year ago and unemployment has fallen below a seasonally adjusted rate of 5 percent. Exports are the most buoyant demand force rising at double-digit annual rates. Winter tourism has seen the best season for several years despite mild weather and poor snow conditions. Construction activity benefitted from the abnormal temperatures, output in the first two months was up by about a quarter from last year. Otherwise, domestic demand remained flat; private consumption was no higher than a year ago. Inflation is moderately gaining momentum, although the trend was interrupted in March, when consumer prices climbed at a 2.2 percent annual rate. In spite of strong import demand the surplus on current account was higher than in early 1988, due to positive developments in tourism and to a number of special factors.