Geopolitical Uncertainty Weighs on Economic Activity

The economy in Austria remains weak. The WIFO-Konjunkturtest (business cycle survey) for February even showed a slight deterioration in business sentiment compared with the previous month. Hopes for an industry-led upturn have so far been disappointed. Geopolitical uncertainty is paralysing investment activity in the euro area. This is also dampening demand for Austrian industrial goods. The war in Iran weighs additionally on sentiment.