Image: Wolfgang Filser
This emerges from the flash estimate by the Austrian Institute for Economic Research (Wifo). The decline in the industrial and construction sectors became more pronounced. But the 1 percent weaker consumer demand from private households also had a negative impact. Even government consumer spending fell by 1.3 percent in the third quarter, after rising by 1.5 percent in the previous quarter. And according to Wifo, the 2.4 percent increase in exports could also be a shift effect, as exports fell significantly in the previous quarter.
Forecast: 5th quarter in a row with stagnating or declining economic performance
Based on the flash estimate, Wifo assumes that this will be the fifth quarter in a row with stagnating or declining economic performance, the institute said in a statement on Monday. In industry, value added fell by 0.5 percent in the third quarter, after minus 0.8 percent in the previous quarter. In the construction industry, Wifo economists recorded a decline of 1.8 percent – after minus 1.3 percent in the months of April to June.
There was weaker economic performance in service production in the areas of information and communication, financial and insurance services, real estate and housing, and other economic services. The latter even recorded a decline of 2.7 percent – after a decline of 2.3 percent in the previous quarter. The trade, transport, accommodation and catering sectors stagnated, while public administration recorded an increase of 0.2 percent and other services recorded an increase of 0.9 percent.
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