For several months, business surveys have indicated a gradual but steady improvement of firms' expectations. Opinions on the current economic situation are also somewhat more upbeat in manufacturing and substantially more so in the construction industry. A turnaround on the labour market,...

No signs are currently visible of a cyclical recovery in Europe. Survey results for Austria as for the whole EU suggest business conditions being fragile, with no upward tendency.

In the last couple of months, business surveys in the euro area point to a slowdown of the recovery in the manufacturing sector. The boom in exports has not, or only hesitantly been transmitted to domestic demand. In Austria, exports and manufacturing output were still relatively lively early...

The dampening impact of the international cyclical slowdown on Austrian exports and business investment is being exacerbated by a decline in construction activity: in April and May, the sector's gross output fell by an inflation-adjusted 8 percent below the year-earlier level. Domestic...

The real economy is now feeling the full impact of the global financial crisis. The economic downturn, which started out with exports, is now spreading to all the other demand components. Real GDP barely grew quarter-on-quarter in the third quarter of 2008 (+0.1 percent). In year-on-year terms,...

Recent months have seen a further improvement in business and consumer sentiment. Companies intend to invest considerably more than last year. Real retail sales also picked up at the turn of the year. The modest rise in prices contributed to a strengthening of purchasing power at the beginning...

Further developments of the world economy are subject to high risks, in the face of volatile stock markets and a possible war against Iraq. Present cyclical conditions are characterised by a persistent weakness of internal demand, both in Europe at large and in Austria.

Underpinned by expansionary economic policy, global economic activity has stabilised, with world trade expanding vigorously since the summer. In Austria, real GDP grew at a seasonally adjusted quarter-on-quarter rate of 0.9 percent in the third quarter, according to provisional calculations....

The weakness of domestic demand in Austria and in major trading partner countries is shaping current economic developments. Hopes for a pick-up of activity are based upon a speedier recovery in the USA which is, however, subject to considerable risks. In Austria, equipment investment and imports...

Surveys among industrial companies show a significant improvement of the business climate both in Austria and the euro area. Positive incentives are coming mainly from strong economic growth in the USA and in Asia, in spite of the strong euro exchange rate. Companies in manufacturing report a...