Economic Sentiment Improves Despite Increased Uncertainty

The results of the April WIFO-Konjunkturtest (business cycle survey) show a good economic momentum despite the Ukraine war compared to the previous quarter. In all sectors except retail trade, economic indicators have further improved. Capacity utilisation increased significantly in all sectors. As in the previous quarter, the most important obstacle to business activity in the total economy was the "shortage of labour force". In manufacturing, construction, and retail trade, however, the shortage of materials and intermediate goods were indicated as the most important constraint. As a result of the Ukraine war, both business uncertainty and companies' selling price expectations increased further.