High Uncertainty Dampens Economy

The results of the WIFO-Konjunkturtest (business cycle survey) show a further weakening of economic dynamics in September. At 5.1 points (seasonally adjusted), the WIFO Business Climate Index was 3.4 points below the value of the previous month (8.5 points), but still in positive territory. Despite declines, the situation indicators continue to show a favourable economic environment. However, business uncertainty has risen to new peaks as a result of the almost complete cut-off of Russian gas supplies and the development of energy prices. As a result, economic expectations have deteriorated further and now signal a mostly sceptical economic outlook.