The pronounced slowdown in the international business cycle is tightening its grip on the domestic export industries. The WIFO business survey for the third quarter confirms the downward trend in firms' assessment of their current situation and production expectations. The adverse trend is particularly visible in the basic goods and the technical manufactures sectors. The rise in employment has clearly lost momentum and can no longer prevent unemployment from heading up. Consumer price inflation remains relatively high. Despite employees' net real incomes shrinking, retail trade is reporting gains in volume sales.