WIFO-Konjunkturtest: Economy Continues to Cool Down

The index of current assessments for the economy as a whole (excluding seasonal fluctuations) remains 1 point below the previous month's level in February, but with 16.7 points still at a confident level. In the construction industry, the index gained 6 points and, with a value of 34.9 points, is well above average. In the service industries, the index fell slightly (–1.4 points) and continues to signal a good service economy with 17.4 points. In the economically important manufacturing sector, the situation index continues to lose momentum (–2.2 points) and, at 10.2 points, remains only just within the range of good economic assessments.

The index of business expectations also lost ground (–1.6 points) and reached a value of 10.5 points. In the construction industry, the expectations index declined (–2 points), but the index value of 15.0 points remains optimistic. In the service industries, the expectation index fell by 2.4 points. The index score of 13.0 points, however, continues to signal confident economic expectations. In the manufacturing sector, the expectation index remained virtually unchanged (–0.1 points) and stays within the confident range at 5.2 points. Thus, very heterogeneous developments across the three sectors were evident in February. In particular the weak development in the production of tangible goods signals a cooling economic momentum.

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