Economic Expectations Remain Subdued

The results of the WIFO-Konjunkturtest (business cycle survey) show a slight deterioration in the economic assessments of Austrian companies in February. The WIFO Business Climate Index stood at 5.6 points (seasonally adjusted), 0.8 points below the value of the previous month (6.4 points). The decline is mainly due to the weakening of economic indicators in the construction industry and services, while economic indicators in the manufacturing sector improved at a low level. Business expectations signal a continuation of the sideways economic movement in the coming months. Companies' demand for credit increased in February, but as in the autumn, companies are more restrictive in their assessment of banks' willingness to lend than in previous years.