30.10.2018

WIFO-Konjunkturtest (business cycle survey): Business climate slightly declines

In October 2018, there was a slight decline in the economic assessments of domestic companies.

Assessments of the current situation and economic expectations are falling slightly but remain at above-average levels. The index of current assessments for the economy as a whole were 1.9 points below the long-term average in October, but at 19.4 points remained at a confident level.

In the construction industry, the index loses 1.2 points, but remains within the range of record levels with a value of 30.8 points. In the service industries, the index fell slightly (minus 1.3 points), but at 19.2 points continues to signal a good service economy. The situation index only loses some of its momentum (minus 2.8 points) in the economically significant manufacturing sector but remains within the range of positive economic assessments at 16.4 points.

The index of business expectations also lost ground slightly (minus 1.4 points) and reached a value of 16.5 points. In the construction industry, the expectations index rose slightly (plus 1.9 points). The index value of 20.2 points signals a new high. In the service industries, the expectation index fell by 1.7 points. However, the index score of 18.2 points still signals optimistic economic expectations. In the manufacturing sector, the expectation index loses more markedly (minus 2.0 points) and at 12.8 points remains in the confident range, although this is the lowest index value since August 2017. Economic expectations for October in all three sectors thus re-main optimistic despite slight declines.

Details on all sectors in the current economic test can be found here.