Uncertainty Weighs on Economic Expectations

The results of the WIFO-Konjunkturtest (business cycle survey) show a slight deterioration in business assessments of the economy in February, the majority of which remain skeptical. At –6.7 points (seasonally adjusted), the WIFO Business Climate Index in February was 1.6 points below the previous month's value (–5.1 points). The overall economic situation assessments remain virtually unchanged, while economic expectations are deteriorating again because of increased uncertainty. The economic picture is determined by the weak industrial economy. Corporate demand for credit fell slightly in the aggregate compared to the previous quarter, as did corporate assessments of banks' willingness to lend, which the majority consider to be restrictive.