Local companies’ expectations regarding economic developments remain pessimistic. However, the mood in October improved slightly compared to the previous month, the economic survey conducted by the Austrian Institute for Economic Research (Wifo) showed. Accordingly, the Economic Climate Index reached minus 7.9 points (seasonally adjusted), i.e. 0.5 points higher compared to the previous month. The weak industrial economy in particular shapes the picture.
The local economy has recently slid into recession after several weak periods. If you follow company ratings nothing will change in the near future. Overall economic assessments remained virtually unchanged, but assessments in goods production (in manufacturing and trade) worsened. In this area, “companies continued to report, in general, a decline in the dynamics of production activity,” says Wivo.
In the construction sector, the situation assessment remained stagnant for the fourth month in a row. The corresponding index remained in the neutral zone with a score of minus 0.1 points (seasonally adjusted), “so the optimistic and pessimistic assessments balance each other out.” Meanwhile, the index is about 10 points below the long-term average, according to Wifo.
Companies in the retail sector continue to express themselves mostly negatively; The mood there has gradually deteriorated since the spring. At least, the index did not fall further in October, reaching minus 15.7 points, 1.1 points higher than the previous month’s value. Economic momentum in the services sector is also likely to stabilize somewhat. There the index rose by 1.1 points to negative 1.3 points and is now below the zero line that separates positive and negative assessments of the situation.
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