Deceleration in Export Industry, Rising Consumer Demand

Export-dependent manufacturing firms have substantially revised downwards their assessment of the business climate, according to the surveys undertaken by the EU Commission for Europe and by WIFO for Austria. The change reflects lower foreign orders as well as the wide-spread uncertainty regarding the future development of the global economy. Those enterprises more geared to the domestic market are more optimistic. Given overall price stability, the current income and employment gains make private consumption the mainstay of the ongoing upswing.