'Austrian economy again losing momentum'

The moderate recovery of the Austrian economy in recent months is faced with yet another slowdown, a leading Austrian research institute stated on Wednesday.

In its latest economic report, the Austrian Institute of Economic Research (WIFO) said although its leading indicators show an improvement in business sentiment through greater investments and a more lively export sector, consumer demand remains poor and the economic climate in the country is therefore expected to be weak, reported Xinhua.

WIFO said neither falling energy prices nor upcoming relief to household income that new tax reforms will bring have been able to shore up private consumption, that has sunk to record lows in recent years. A continuation of this trend expected in the coming months.

Trade with foreign countries is also having a mixed effect on the domestic economy, with exports to the most important emerging markets slumping, particularly to Russia.

Demand from within the EU for Austrian products grew only slightly, while exports to the United States have grown strongly.