High Uncertainty Dampens Economy

29.09.2022

WIFO-Konjunkturtest (Business Cycle Survey) of September 2022

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.

The current situation index lost 3.6 points in September but remained positive at 9.6 points. In the manufacturing sector, which is particularly sensitive to economic developments, the situation index lost 1.5 points compared to the previous month but remained positive at 10.0 points. In the construction industry the situation index lost 0.5 points, but also remained above average at 22.7 points. In the service sectors, the index lost 6.1 points compared to the previous month but remained above the zero line with a value of 10.5 points. In the retail sector, the situation index declined by a further 0.7 points and stood at –10.6 points, in the range of very sceptical economic assessments.
The business expectations index also lost momentum in September (–3.2 points). At 0.7 points, it was only just above the zero line that separates negative from positive economic expectations. In the retail sector, the expectations index lost 4.1 points and was clearly in negative territory at –24.2 points. In the service sectors the expectations index also fell (–3.5 points) and at 1.7 points was only just above the zero line. In the construction industry the expectations index also declined (–1.1 points), but at 33.2 points it remains in the optimistic range, which is due to the high price expectations. In contrast, the business situation expectations in the construction industry have been in negative territory since May. In the manufacturing sector, which was particularly affected by the rise in energy prices, the expectations index declined (–3.0 points). At –3.4 points, it was below the zero line and thus in the pessimistic range.


Publications

Hohe Unsicherheit dämpft Konjunktur. Ergebnisse des WIFO-Konjunkturtests vom September 2022 (High Uncertainty Dampens Economy. Results of the WIFO-Konjunkturtest (Business Cycle Survey) of September 2022)
WIFO Business Cycle Survey, 2022, (9), 13 pages
Commissioned by: European Commission
Online since: 29.09.2022 14:00
Die Ergebnisse des WIFO-Konjunkturtests zeigen im September eine weitere Abschwächung der Konjunkturdynamik. Der WIFO-Konjunkturklimaindex notierte mit 5,1 Punkten (saisonbereinigt) 3,4 Punkte unter dem Wert des Vormonats (8,5 Punkte) aber nach wie vor im positiven Bereich. Die Lageindikatoren zeichnen trotz Rückgängen weiterhin ein günstiges Konjunkturumfeld. Allerdings ist die unternehmerische Unsicherheit infolge der weitgehenden Einstellung der russischen Gaslieferungen und der Energiepreisentwicklung auf neue Höchstwerte gestiegen. Infolgedessen haben sich die Konjunkturerwartungen weiter eingetrübt und signalisieren mittlerweile mehrheitlich skeptische Konjunkturausblicke.
Please contact

Dr. Werner Hölzl

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