Iran War Puts Pressure on Economic Climate

The results of the WIFO-Konjunkturtest (business cycle survey) show a marked decline in business sentiment in April. The WIFO Business Climate Index stood at –5.8 points (seasonally adjusted), 3.9 points below the March value. The Iran war, with its impact on prices and the resulting uncertainty, is dampening business sentiment: Economic expectations and assessments of the current situation have deteriorated in April. The deterioration in economic sentiment is evident across all sectors. The declines are particularly pronounced in manufacturing and services. In the construction sector, although the expectations index shows an improvement, this is solely attributable to the rise in construction price expectations.