Inflation Rate Falls Significantly, but Economic Activity Remains Sluggish

Having overcome the recession, Austria's industry does not appear to be gaining momentum for the time being. After three slight improvements, the WIFO-Konjunkturtest (business cycle survey) for January 2026 showed a renewed deterioration in the business climate of the manufacturing sector. International demand for domestic industrial goods is suffering from the economic weakness in the EU and US tariffs. The Austrian inflation rate almost halved in January compared with the previous month. Stabilisation trends are also evident on the labour market.