Business Cycle is Waning

The weakness of the global economy is dampening the Austrian business cycle. Export growth slowed noticeably in the second quarter, and GDP growth eased to +0.3 percent compared to the previous quarter. Private household consumption, however, continued to increase and supported overall growth. The prospects for the Austrian economy stabilised recently. According to the WIFO-Konjunkturtest (business cycle survey), company assessments brightened somewhat in August, especially in the manufacturing sector. The recovery on the labour market is coming to a halt, the seasonally adjusted unemployment rate stagnated in August. The inflation rate fell slightly to 1.4 percent in July.