Growth Accelerating in First Quarter

The Austrian economy grew by 0.8 percent quarter-on-quarter or 3.2 percent year-on-year in the first quarter of 2007, according to WIFO's latest flash estimate. Goods exports and investment are the main pillars of the upturn. The sentiment among manufacturers is currently as optimistic as last recorded in 2000. Private consumption, on the other hand, shows hardly any signs of a pickup. First quarter retail sales clearly exceeded last year's volumes, yet the private consumption result was held down by weak car sales and lower fuel consumption due to the mild weather.