Economic Expectations Cloud Over

The index of current business situation assessments declined in May (–3.0 points) and was slightly lower in positive territory at 9.7 points. In manufacturing, which is particularly sensitive to the economic development, the situation index lost 2.2 points compared to the previous month and was again more clearly below the zero line at –3.3 points. In the construction industry the situation index gained 1.2 points and remained in positive territory at 16.2 points. In the service sectors the index lost 3.5 points compared to the previous month, but with a value of 17.6 points it signals positive economic assessments. In the retail trade sector, the situation index fell by 6.3 points and was only just in positive territory at 2.1 points.

The index of business expectations for the economy as a whole lost 9.1 points in May and at 0.2 points was only at the zero line that separates negative from positive economic expectations. In the retail trade sector, the expectations index fell by 8.4 points and stood at –20.6 points, deep in sceptical territory. In the service sectors, the expectations index lost 10.5 points, but remained in positive territory at 6.2 points. In the construction industry, the expectations index fell by 8.0 points, but remained in positive territory at 8.1 points. This decline is partly due to the fall in construction price expectations. In manufacturing, the expectations index declined significantly (–7.4 points). At –5.5 points, the index was again more clearly below the zero line separating positive from sceptical expectations.