Index shows again:

Sentiment in Tyrolean industry continues to plummet

Symbolic image

(Bild: Florian Wieser)

The Tyrolean Federation of Industry presents the current business climate index. Once again, it paints a gloomy picture. President Max Kloger makes the familiar demands.

It is reminiscent of the famous movie "Groundhog Day" with actor Bill Murray in the leading role. We are talking about the mood barometer of the Federation of Austrian Industries Tyrol. "The business climate index from the fourth quarter of 2024, which combines the assessment of the current and future business situation, remains at a historically low level of 7.5 points," it says.

Only 14% of companies rate the situation as good, while a worrying 42% rate it as poor. The order backlog is even more dramatic. 15 percent rate this as good, a whopping 55 (!) percent as poor.

Reducing non-wage labor costs by at least five percent is crucial. An extension of electricity price compensation until 2030 is also essential.

Max Kloger

Bild: Franz Oss

Only one percent expect an improvement
The outlook for the coming months is also extremely gloomy. "When forecasting the business situation in six months, only one percent of respondents expect an improvement, 84 percent expect an average development, while 15 percent expect a further deterioration."

A similar picture emerges for expected production activity. "14% expect good capacity utilization in the next three months, while 66% expect average and 20% expect poor development."

"It will become increasingly difficult without measures"
Tyrol's IV President Max Kloger is therefore once again making the same demands to politicians as in the past. "Reducing non-wage labor costs by at least five percent is key. An extension of the electricity price compensation until 2030 is also essential. And there is still a focus on reducing the costs of bureaucracy."

In conclusion, the IV President believes that industry in Tyrol remains a central pillar for prosperity and jobs in the region. "But without a clear economic policy framework, it will become increasingly difficult for companies."