Economic Upturn Stabilises

29.07.2021

WIFO-Konjunkturtest (Business Cycle Survey) of July 2021

Sentiment among Austrian companies stabilised at a high level in July. The WIFO Business Climate Index was at 22.0 points (seasonally adjusted), almost unchanged from the previous month (22.6 points). Economic assessments of the current situation improved despite continuing supply bottlenecks.

Economic expectations, on the other hand, show a decline, but nevertheless remain at a high level. After the strong catch-up process of the past months, the upswing is continuing with somewhat weaker momentum.

The index of current assessments for the overall economy rose by 2.3 points in July (excluding seasonal fluctuations) and was clearly in positive territory at 24.6 points. In the service sectors the index improved markedly (+4.4 points) and at 22.2 points was clearly above the zero line separating positive from negative economic assessments. In the construction industry the situation index stabilised and, despite a decline of 5.8 points, remained at an above-average level of 36.1 points. In the manufacturing sector, the situation index gained 1.7 points and signalled good business activity in the manufacturing sector with 24.7 points.

The expectations of Austrian companies stabilised compared to the previous months. The index of business expectations lost 3.4 points in July, but was still clearly in the optimistic range at 19.4 points. In the construction industry, the expectations index fell by 6.0 points, but remained clearly in the optimistic range at 35.5 points. In the service sectors, the expectations index lost –2.7 points, but remained in the optimistic range at 17.1 points. In the manufacturing sector, as well, the expectations index lost momentum (–4.9 points), but remained clearly in the optimistic range at 16.8 points.

Publications

Konjunkturaufschwung stabilisiert sich. Ergebnisse des WIFO-Konjunkturtests vom Juli 2021 (Economic Upturn Stabilises. Results of the WIFO-Konjunkturtest (Business Cycle Survey) of July 2021)
WIFO Business Cycle Survey, 2021, (7), 12 pages
Commissioned by: European Commission
Study by: Austrian Institute of Economic Research – Computing Centre for Economics and Social Sciences
Online since: 29.07.2021 14:00
Die Stimmungslage unter den österreichischen Unternehmen hat sich im Juli auf hohem Niveau stabilisiert. Der WIFO-Konjunkturklimaindex notierte bei 22,0 Punkten (saisonbereinigt) nahezu unverändert zum Vormonat (22,6 Punkte). Die Konjunktureinschätzungen der aktuellen Lage verbesserten sich trotz weiter anhaltender Lieferengpässe. Die Konjunkturerwartungen zeigen hingegen einen Rückgang, bleiben aber dennoch auf hohem Niveau. Nach dem starken Aufholprozess der vergangenen Monate setzt sich der Aufschwung mit etwas schwächerer Dynamik fort.
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Werner Hölzl

Research groups: Industrial Economics, Innovation and International Competition
© Ahmed Elqsas/behance.net
© Ahmed Elqsas/behance.net