Business Sentiment Remains Tense

The results of the WIFO-Konjunkturtest (business cycle survey) show that business sentiment remained stable in June. Due to the uncertainty surrounding the war in Iran sentiment remains sceptical. The WIFO Business Climate Index stood at –5.0 points (seasonally adjusted), 0.1 points below the May figure. Whilst assessments of the current situation deteriorated slightly, economic expectations improved, albeit from a low base. The price effects and uncertainties arising from the war in Iran are weighing particularly heavily on manufacturing and the retail sector. In the services sector, expectations remain sceptical despite an improvement, and the construction sector is seeing a decline in assessments of the current situation.