Economic Upturn Stabilises

Economic expectations, on the other hand, show a decline, but nevertheless remain at a high level. After the strong catch-up process of the past months, the upswing is continuing with somewhat weaker momentum.

The index of current assessments for the overall economy rose by 2.3 points in July (excluding seasonal fluctuations) and was clearly in positive territory at 24.6 points. In the service sectors the index improved markedly (+4.4 points) and at 22.2 points was clearly above the zero line separating positive from negative economic assessments. In the construction industry the situation index stabilised and, despite a decline of 5.8 points, remained at an above-average level of 36.1 points. In the manufacturing sector, the situation index gained 1.7 points and signalled good business activity in the manufacturing sector with 24.7 points.

The expectations of Austrian companies stabilised compared to the previous months. The index of business expectations lost 3.4 points in July, but was still clearly in the optimistic range at 19.4 points. In the construction industry, the expectations index fell by 6.0 points, but remained clearly in the optimistic range at 35.5 points. In the service sectors, the expectations index lost –2.7 points, but remained in the optimistic range at 17.1 points. In the manufacturing sector, as well, the expectations index lost momentum (–4.9 points), but remained clearly in the optimistic range at 16.8 points.