Austria's real GDP grew by 3.3 percent year-on-year or by 0.8 percent (seasonally adjusted) quarter-on-quarter in the fourth quarter of 2006, according to WIFO's first flash estimate. This robust economic growth mainly reflects the boom in manufacturing and construction, where high rates of capacity utilisation and a very good profit situation are driving companies to noticeably increase their investment spending. In contrast, private household consumption remains subdued. Business has been sluggish in retailing and other sectors of the economy that are dependent on consumption. Wage increases have been modest and therefore do not allow a stronger expansion of consumer demand, despite low inflation. While the situation on the job market has improved markedly during the winter months due to the good performance of the economy and the mild weather, unemployment nevertheless continues to be relatively high.