Economic Upturn Consolidates

WIFO-Konjunkturtest (Business Cycle Survey) of June 2021
Sentiment among Austrian companies continued to improve in June. The WIFO Business Climate Index stood at 22.6 points (seasonally adjusted) after 18.0 points in the previous month. This is the highest value since March 2018.

Despite supply bottlenecks, the economic rebound is broadening. Assessments of the situation also improved in most sectors affected by restrictive measures. The economy continues to pick up speed.

The index of current assessments for the overall economy rose by 7.7 points in June (excluding seasonal fluctuations) and was clearly in positive territory at 22.3 points. In the service sectors, which have so far been particularly affected by the COVID-19 restrictive measures, the index improved markedly (+11.2 points) and at 17.9 points was clearly above the zero line separating positive from negative economic assessments. In the construction industry the situation index stabilised further (+2.0 points) and at 41.9 points was at an above-average level. In the manufacturing sector, the situation index gained 4.0 points and signalled a good economic situation in this sector with 22.8 points.

The expectations of Austrian companies also improved further compared to the previous month. The index of business expectations gained 1.5 points in June and continued to be optimistic at 22.9 points. In the construction industry, the expectations index rose by 9.0 points and recorded its highest value to date at 41.6 points; this is probably also due to the upturn in construction prices. In the service sectors, the expectations index lost 1.5 points, but at 20.0 points remained noticeably in the confident range. In manufacturing, also, the expectations index gained further momentum (+3.8 points) and was clearly in the optimistic range at 21.4 points.


Results of the WIFO-Konjunkturtest (Business Cycle Survey) of June 2021
Finalization: June 2021
Project partner Austrian Institute of Economic Research, Economic and Social Science Computing Center
Contractor project: European Commission
Specialist publication: WIFO-Konjunkturtest
Dr. Werner Hölzl
Industrial, Innovation and International Economics