The Austrian economy continues to suffer from sluggish demand. Export growth is declining and industrial enterprises tend to remain pessimistic about their business opportunities. Consumer demand is unlikely to stimulate the economy. The construction industry, however, is on the upswing.

As a result of the persistent weakness of domestic demand, manifest in the stagnation of retail trade sales and a decline in construction activity, the development in the export sector is of particular importance for the future course of the economy. According to the WIFO business survey, the...