The WIFO Leading Indicator is a monthly composite indicator designed to provide timely indication of business cycle turning points in the Austrian economy. It consists of a combination of 10 different indicators, each having a constant lead to the overall Austrian economic activity of up to 3 quarters to macroeconomic activity in Austria. These individual indicators relate to about half each to the Austrian and European economic area and, in addition to real economic indicators and stock indices, mainly comprise survey data.
The WIFO Leading Indicator is published in the first week of each month.
In July, the WIFO Leading Indicator stopped the strong downward trend of the past three months and recorded an above-average gain of 0.5 index points compared to the previous month. The upturn in the indicator has a broad basis: all sub-components improved in June compared to May. However, compared to the February values, i.e. before the great outbreak of the COVID-19 pandemic in Austria, the June figures are still clearly behind. Only the assessment in consumer confidence is rather surprisingly already at a similar level. Overall, the current picture of the sub-components of the WIFO Leading Indicator shows first signs (broad-based) of a gradual recovery after the sharp declines.