Weak Construction Activity Weighs on Economic Development

In the fourth quarter of 2022, the Austrian GDP stagnated, after showing a growth rate of a mere 0,1 percent in the third quarter. Since autumn 2022, the assessment of the current business situation and the expectations of companies had brightened somewhat. However, the latest WIFO-Konjunkturtest (business cycle survey) does not show any further improvement. Value added in the construction industry has been shrinking with increasing momentum since the third quarter 2022.