Economic Forecasts Brighten Up

The index of current assessments for the overall economy rose by 8.3 points in March (excluding seasonal fluctuations), but at –8.3 points remains below the zero line separating negative from positive assessments. Despite the gains, there are still differences across sectors. In the service sectors, which were severely affected by the COVID-19 restrictive measures, the index improved (+5.0 points) but remained in very sceptical territory with a value of –19.2 points. In the construction industry, the situation index rose by 9.2 points and at 31.4 points is at an above-average level. In the manufacturing sector the situation index gained 6.2 points, but still remained in negative territory at –3.8 points.

The expectations of Austrian companies improved significantly compared to the previous month. The business expectations index gained 9.4 points in March and, at 1.9 points, is in positive territory for the first time since February 2020. In the construction industry, the expectations index gained 6.8 points and is noticeably more optimistic at 13.2 points. In the service sectors, the expectations index gained 10.8 points and is now –0.4 points above the zero line. In the manufacturing sector, the expectations index also gained momentum (+7.9 points) and is now 1.8 points above the zero line. The majority of companies expects improvements in the business situation, which is marked by the COVID-19 crisis, in the coming months.