Sideways Movement in Economic Assessments

The results of the WIFO-Konjunkturtest (business cycle survey) in August show a continuation of the stabilisation of business assessments of the economy despite a slight decline. At –2.6 points (seasonally adjusted), the WIFO Business Climate Index was 0.2 points below the July value. Sentiment remained largely stable across all sectors. Slight declines in services and retail were offset by slight improvements in construction and manufacturing. However, economic activity in the intermediate and capital goods sectors remains weak. Corporate demand for credit remained virtually unchanged compared to the previous quarter, as did business assessments of banks' willingness to lend, which is still considered to be rather restrictive.