Economy Loses Momentum

Results of the WIFO-Konjunkturtest (Business Cycle Survey) of August 2022

The results of the WIFO-Konjunkturtest (business cycle survey) show a further weakening of economic dynamics in August. At 8.4 points (seasonally adjusted), the WIFO Business Climate Index is 2.1 points below the value of the previous month (10.5 points) but still in positive territory. While the situation indicators still point to a positive economic environment despite declines, business expectations signal a sceptical economic outlook. Demand for credit remains low in August. Companies view banks' willingness to lend more restrictively than in previous quarters. Business uncertainty remains high due to gas supply imbalances and high energy prices.