Cyclical Recovery Continuing

Results of the WIFO business cycle survey show that the business climate in the manufacturing and construction in-dustries has brightened markedly in the first quarter of 2006. But there are no indications that a revival of investment activity has already gotten off the ground. Improvement in consumer sentiment has been modest, with retail sales disappointing until the end of 2005. In contrast, the winter tourist season got off to a good start. Inflation is slowing down. While the number of employed persons has been on the rise, unemployment numbers reached a new peak in winter.