Real GDP contracted at a seasonally and working day adjusted quarterly rate of 0.2 percent in the fourth quarter of 2008. The economic downturn has taken a firm grip of the export-oriented manufacturing sector, with production, capacity utilisation and incoming orders markedly below the levels seen in summer 2008. Neither the course of economic activity of Austria's major trading partners nor the results of WIFO'S January 2009 business survey give reason to hope for an imminent recovery of the domestic industry. Value added growth in the construction sector has weakened only little so far. Private consumption continues to rise slowly, and tourism recorded a strong start of the winter season. Nevertheless, the economic downturn is already clearly visible in important economic policy variables: Unemployment is rising markedly, inflation is slowing noticeably.