![](https://www.wifo.ac.at/wp-content/uploads/2024/05/ITKT_2024_allgemein.jpg)
Economic Climate Index Declines Slightly
The index of current situation assessments for the total economy lost 2.5 points in July and was noticeably negative at –9.5 points. In manufacturing, which is particularly important for the economy, the situation index gained 2.4 points, but at –22.3 points was still well below the zero line that separates positive from negative situation assessments. In construction, the situation index fell (–2.6 points) and was lower in negative territory at –5.1 points. In the services sector, the situation index fell significantly (–6.0 points) and was in negative territory at –4.6 points. The situation index also deteriorated in the retail trade (–1.6 points) and stood at –0.1 points on the zero line.
The index of business expectations for the total economy deteriorated slightly by 0.3 points in July and, at –6.7 points, was below the zero line that separates negative from positive economic expectations. In the retail trade, the expectations index fell (–5.8 points) and, at –20.1 points, remained noticeably in the area of sceptical economic expectations. In the services sector, the expectations index fell by 1.8 points and remained in negative territory at –2.4 points. In construction, there was a slight deterioration in expectations (–1.2 points). At –3.4 points, the index remained below the zero line. In manufacturing, the expectations index showed a slight improvement in July (+4.0 points). However, at –11.6 points, the index remained in the area of sceptical economic expectations.