Economy Remains Tepid. Business Cycle Report of August 2013

The Austrian economy also remains tepid in a context of weak economic activity in Europe. The export-driven manufacturing sector is recovering only slowly; the production index has stabilised in recent months, although it suffered a renewed decline in May. The latest leading indicators show only little improvement; companies still expect the economic situation to remain tense. Trade and tourism have recently seen a decline in sales. The economic weakness continues to weigh on the labour market; employment growth decelerated in July compared with the previous month, and was accompanied by a renewed increase in the number of unemployed persons.