Economic Development with Weak Momentum

Situation assessments remained almost unchanged compared to the previous month and were particularly negative in the manufacturing sector. Economic expectations improved slightly, but continue to signal a sceptical economic outlook. Companies' demand for credit rose slightly in November. Nevertheless, the majority of companies consider the banks' willingness to lend to be restrictive.

The index of current situation assessments for the economy as a whole remained almost unchanged in November compared to the previous month (–0.1 points) and remained in negative territory at –8.1 points. In manufacturing, which is particularly sensitive to economic trends, the situation index gained 0.3 points, but at –22.1 points was still well below the zero line that separates positive from negative situation assessments. In the construction industry, on the other hand, the situation index fell slightly (–1.7 points) and was below the zero line at –2.0 points. In the services sectors, the index rose slightly (+0.2 points), but remained in negative territory with a value of –1.1 points, as in previous months. In the retail sector, the situation index remained almost unchanged (–0.1 points) and was below the zero line at –6.0 points.

The index of business expectations for the economy as a whole gained 1.5 points in November, but at –5.9 points was still below the zero line that separates negative from positive economic expectations. In the retail sector, the expectations index gained 4.2 points compared to the previous month, but remained deep in negative territory at –20.6 points. In the services sectors, the expectations index rose by 0.7 to 1.8 points above the zero line. In the construction industry, the expectations index rose (+3.8 points) and was back above the zero line at 4.4 points, although production expectations remained clearly negative. In manufacturing, the expectations index showed a slight improvement in November (+1.0 points). However, at –17.1 points, the index remained deep in the range of pessimistic economic expectations.