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Industrial Production Booming, Consumer Demand Subdued. Business Cycle Report of December 2006

Listed author(s):
  • Markus Marterbauer


In the third quarter, the Austrian economy expanded by 3.2 percent in real terms year-on-year or by 0.9 percent quarter-on-quarter, according to the revised quarterly calculation by WIFO. The booming export-oriented industry and the construction industry are the main drivers of economic growth. Evidence from the WIFO business cycle survey suggests that the positive trend is set to continue in both sectors in the months to come. By contrast, consumer spending by private households continues to be subdued, advancing for the sixth consecutive year at a rate below the long-term average, mainly owing to the moderate expansion of real disposable incomes. The good performance of the manufacturing and the construction industries increasingly contributes to the rise in the number of full-time jobs and to a decline in unemployment.

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Article provided by WIFO in its journal Quarterly.

Volume (Year): 11 (2006)
Issue (Month): 4 (December)
Pages: 180-187

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Handle: RePEc:wfo:wquart:y:2006:i:4:p:180-187
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