Iran War Weighs on Business Sentiment

The results of the WIFO-Konjunkturtest (business cycle survey) show a further decline in business confidence in March. The WIFO Economic Climate Index stood at –1.7 points (seasonally adjusted), 0.8 points below the February figure. The Iran war, with its impact on prices and the resulting uncertainties, is also affecting business sentiment. In particular, assessments of the current situation have deteriorated in March, while economic expectations have declined only slightly compared to the previous month. Economic sentiment is deteriorating across all sectors except the construction industry. Here, following the weather-related declines of the past two months, an improvement in economic sentiment is noticeable.