Darkening Sentiment. Business Cycle Report of June 2008

The Austrian economy expanded quite vigorously in the first quarter: +0.7 percent quarter-on-quarter, and +3.3 percent year-on-year. The growth rate was revised down slightly from the flash estimate released a month ago. Manufacturers' assessment of the production outlook for the coming months has deteriorated considerably. Business expectations have fallen below their longer-term averages.