Industrial Sentiment Clouds Economic Climate

The results of the WIFO-Konjunkturtest (business cycle survey) show a deterioration in business assessments of the economy at the end of the year. At –6.1 points (seasonally adjusted), the WIFO Business Climate Index in December was 1.9 points below the previous month's value (–4.2 points). While overall economic situation assessments improved slightly at a low level, economic expectations fell across all sectors. The decline in the index is primarily due to a further deterioration in the industrial economy. Expectations in particular were further reduced and signal a very sceptical economic outlook.