Slight Improvement in Economic Expectations Amid Persistent Risks

The results of the WIFO-Konjunkturtest (business cycle survey) show a slight improvement in businesses' economic assessments in July. However, sentiment remains subdued due to price effects and uncertainties surrounding the war in Iran. The WIFO Business Climate Index stood at –3.8 points (seasonally adjusted), 1.3 points above the June figure. Assessments of the current situation rose slightly. Economic expectations improved but remained at a subdued level. In the manufacturing and services sectors, the indices remained largely sceptical. In the retail sector, the indices rose more sharply, whilst in the construction sector, assessments of the current situation improved against a backdrop of falling construction price expectations.