Declining Exports Leading to Output Cuts

European recession is tightening its grip on the Austrian economy. Volume exports fell by 4 percent year-on-year in the last quarter of 1992, partly due to exchange rte shifts. For the same period, industrial output was down 3 percent. The cyclical downswing is likely to continue over the next months. Business confidence has weakened further and employment in February, for the first time since 1987, fell short of its level a year ago. Still, consumer price inflation is virtually unabated at an annual rate of more than 4 percent.