Assessments of the Current Situation Improve, Expectations Decline

The results of the WIFO-Konjunkturtest (business cycle survey) show a slight decline in business assessments of the economic situation in February. The WIFO Business Climate Index stood at –0.7 points (seasonally adjusted), 0.3 points below the January figure. In general, assessments of the current situation improved, mainly due to increases in the service and industrial sectors. Economic expectations, on the other hand, continued to deteriorate compared with the previous month, with little difference between sectors. In the construction industry, the weather is likely to have had an impact on economic sentiment. Demand for credit from businesses declined slightly compared with the previous quarter. The assessment of banks' willingness to lend also deteriorated slightly and is considered restrictive by the majority of companies.