Robust Economic Growth Continues Amid Slight Darkening of Sentiment

The Austrian economy expanded by 0.8 percent quarter-on-quarter and 3.4 percent year-on-year in the third quarter of 2007, according to WIFO's latest flash estimate. While exports continued to be the main driver of the upswing, investment in machinery and electrical equipment also posted substantial gains. Private consumption, by contrast, does not show any signs of a pick-up. The deterioration in sentiment indicators points to moderation in economic growth in the fourth quarter.