WIFO-Konjunkturtest of February 2020

The index of current assessments of the overall economic situation increased by 1.7 points to the 12.9 mark in February (excluding seasonal fluctuations). The gain is due to the manufacturing and construction sectors. In the service sectors, the index decreased by 1.5 points, but at 14.1 points continues to signal a dynamic service economy. In the construction sector the index rises by a further 5.1 points. With a value of 40.3 points, it is in the very optimistic range and thus reflects the unusual breadth of positive economic assessments but also the good weather conditions. In the economically significant manufacturing sector, the situation index gained significantly (+5.5 points) and at 2.5 points is in positive territory for the first time since October.

The index of business expectations loses some momentum in February (–0.8 points) and reaches a value of 8.2 points. In the construction industry, the expectations index decreases slightly (–0.7 points), but at 11.2 points remains in the confident range. In the services sector, the expectations index declines slightly more (–2.5 points), but at 12.2 points remains within the range of confident economic expectations. Only in the manufacturing sector the expectations index rises (+1.9 points) and at 1.2 points is back in positive territory for the first time since September. However, the index value continues to point to a weak industrial economy due to below-average expectations.

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