emirates7 - Austria’s latest banking data showed economic confidence indicators continued to decline amid the impact of tensions in the Middle East on European markets and ongoing pressure from slowing growth, inflation and high energy costs.

Austria’s UniCredit Bank said its economic indicator fell by 0.5 points in April from the previous month to -1.8 points, marking its lowest level in six months.

Bank economists attributed the decline mainly to weaker sentiment in the services and construction sectors and a sharp in consumer confidence.

Stefan Bruckbauer, Chief Economist at UniCredit Bank, said the impact of the Middle East conflict on Austria’s economy was expected to continue through the winter.

He said weaker sentiment at the start of the second quarter reflected subdued growth prospects in the coming months amid persistent uncertainty weighing on economic activity and market confidence.

The bank said geopolitical uncertainty and accelerating inflation driven by higher fuel and energy prices had pushed consumer confidence to its lowest level in two and a half years.

Economist Walter Pudschedl forecast Austria’s gross domestic product would grow 0.8 percent in 2026, with average annual inflation expected at 3 percent.