Industry and Construction Experiencing Boom

Austria's economy expanded by 3.3 percent in real terms year-on-year in the fourth quarter, according to WIFO's flash estimate; this corresponds to a seasonally adjusted GDP growth by 0.8 percent from the previous quarter. Notably manufacturing and construction are registering very strong growth causing a sizeable increase in the number of full-time jobs and enabling a reduction in unemployment. In contrast, those sectors of the economy that are dependent on private household consumption show no signs of a robust revival. Wage growth has been modest and does not permit a strong expansion of consumption, despite low consumer price inflation.