Economic Assessments Remain in the Grip of the COVID-19 Crisis – Expectations Signal a Beginning Recovery. Results of the WIFO-Konjunkturtest Quarterly Survey of July 2020

The July results of the WIFO-Konjunkturtest (business cycle survey) show that current economic assessments continue to be determined by the COVID-19 crisis. Only the construction industry is already showing signs of a recovery. However, economic expectations are improving in all sectors. The WIFO-Konjunkturampel (WIFO economic traffic light) confirms this improvement of the mood in the Austrian corporate sector and indicates a trend reversal. However, the uncertainty indicator remains at above-average levels in all sectors. Capacity utilisation increased in all sectors compared to April, as did assured production duration. The information provided by companies on the obstacles to their business activities shows the distortions of the COVID-19 crisis. In July the most frequently mentioned obstacle was the "lack of demand".