Economic Expectations Cloud Over Again

The results of the WIFO-Konjunkturtest (business cycle survey) show a slight deterioration in business assessments of the economy in May. At –4.1 points (seasonally adjusted), the WIFO economic climate index was down 0.8 points on the previous month (–3.3 points). Assessments of the total economy showed a slight improvement but remained in the slightly sceptical range. Economic expectations deteriorated compared to the previous month, signalling a pessimistic economic outlook. The economic picture continues to be dominated by the weak industrial sector. Demand for credit from companies fell in May. Despite an improvement, a majority of companies continue to judge the banks' willingness to grant loans as restrictive.