Further Improvement in Business Expectations

Exports of goods regained momentum in the third quarter. As expected, private consumption in the last months reacted with a lag to the positive effects of the tax reform on household incomes. The decline in the euro exchange rate is brightening the outlook for exports and the softening of oil prices is boosting real incomes. Business surveys over the last few months signal a revival of activity in the euro area. Also the results for Austria of November point to a further slight improvement of order levels and the business situation.