Improvement in Economic Forecasts Despite Continued High Uncertainty

The results of the WIFO-Konjunkturtest (business cycle survey) for April show an improvement in the mood of Austrian companies despite the Ukraine war. The WIFO Business Climate Index stood at 24.3 points (seasonally adjusted), 6.6 points above the value of the previous month (17.8 points). Assessments of the current economic situation improved in all sectors. Economic expectations also regained momentum after the decline in the previous month. However, business uncertainty remained high as a result of the Ukraine war and supply bottlenecks, especially in export-intensive sectors. The majority of companies expect to have to raise their prices in the coming months.