Foreign Demand Still Heading Downward

Following the profile in Western Europe the downturn of the Austrian business cycle came to a halt during spring. Exports and industrial output have stabilised at a level markedly lower than a year ago. However, leading indicators suggest a further weakening of foreign demand. Domestic private consumption and construction activity are holding up well. Tourism earnings in the early summer season were lower than last year. Employment is keeping a high level implying a squeeze in productivity. Consumer price inflation abated to an annual rate of 3.5 percent in July.