Cautious Improvement in Economic Assessments

The results of the WIFO-Konjunkturtest (business cycle survey) show an improvement in business assessments of the economy in May. At –4.9 points (seasonally adjusted), the WIFO economic climate index was 2.2 points higher than in April. Sentiment has improved in all sectors, with expectations only deteriorating in the services sector. The industrial economy is showing signs of stabilisation, although the improvements in the index in May were mainly concentrated in the consumer goods sector. Corporate demand for credit fell slightly compared to the previous quarter. Assessments of banks' willingness to grant loans improved, but the majority of them are still considered to be restrictive.