Economic Downturn Intensifies

The index of current assessments of the overall economy lost 5.6 points in August and was clearly in negative territory at –7.7 points. In the manufacturing sector, which is particularly sensitive to the economic situation, the situation index fell by 6.2 points and at –17.6 points was noticeably below the zero line separating positive from negative assessments of the situation. In the construction industry the situation index fell by 0.2 points and was exactly at the zero line with 0.0 points. In the service sectors, the index also lost considerable momentum compared to the previous month (–6.0 points) and, with a value of –3.4 points, was in negative territory for the first time since April 2021. The situation index also lost ground in the retail trade sector (–6.5 points) and was also in negative territory at –6.0 points.

The index of business expectations for the overall economy lost 1.7 points in August and stood at –10.0 points, noticeably below the zero line that separates negative from positive economic expectations. In the retail sector, the expectations index gained 0.5 points compared to the previous month but remained deep in the pessimistic range at –23.7 points. In the service sectors, the expectations index fell by 0.6 points and was negative at –3.9 points. The expectations index also declined in the construction industry (–2.0 points) and was negative for the first time since May 2020 at –0.8 points. In manufacturing, the expectations index also deteriorated in August (–4.2 points). The index now stands at –18.4 points, well below the zero line.