Business climate index

Tyrolean industry remains under pressure

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(Bild: stock.adobe.com)

The business climate index has improved only minimally. Only five percent of Tyrolean companies believe there will be an improvement in the next six months. The IV President is making familiar demands.

There is no really good news from industry. From the first to the second quarter, the business climate index improved only minimally by 1.5 points from 10.5 to 12. "While the global economy is beginning to recover and, according to estimates by the International Monetary Fund, will grow by up to 3.2 percent by the end of the year, the Austrian economy is stagnating at a low level," says the IV.

Our companies are under immense pressure due to the massive increase in unit labor costs, continuing high energy prices and weakening demand.

Max Kloger

Bild: Die Fotografen Charly Lair

19 percent rate their situation as good
According to the experts, industry and construction are still in recession. In addition, "the massive increase in unit labor costs due to the historically high agreements reached in last year's collective bargaining negotiations is having a significant negative impact on competitiveness abroad".

The companies surveyed are also facing a rather bleak future. Although 19% (+9%) rate their current business situation as good, 58% (+7%) as average and "only" 23% (-16%) as poor, only 5% believe that the economic environment will improve in the next six months.

"The current situation is worrying for us"
"The current situation in Tyrolean industry is worrying, our companies are under immense pressure due to the massive increase in unit labor costs, the continuing high energy prices and weakening demand," summarizes Tyrol's IV President Max Kloger.

The IV's demands are already familiar: "Reducing non-wage labor costs is essential in order to give our companies more leeway and increase the net wages of employees. The bureaucracy that inhibits growth must also be reduced," says the IV boss.