Economic Expectations Weaken

The results of the WIFO-Konjunkturtest (business cycle survey) of July show a weakening of economic dynamics and a clouding of economic expectations in a quarterly comparison. In all sectors, the economic indicators lost ground compared to April. Capacity utilisation also declined in all sectors but remained at above-average levels. In the economy, as in the previous quarter, the "shortage of labour force" was the most important obstacle to business activity, in manufacturing and retailing the shortage of materials and intermediate products. Business uncertainty increased, while sales price expectations remained above average.