Recovery Delayed

As a result of the persistent weakness of domestic demand, manifest in the stagnation of retail trade sales and a decline in construction activity, the development in the export sector is of particular importance for the future course of the economy. According to the WIFO business survey, the assessment of export orders by enterprises in manufacturing improved slightly. The overall business climate worsened, however. Capacity utilisation remains weak, and there is no sign of a pickup in investment activity.