The Austrian economy grew at a quarter-on-quarter rate of 1.2 percent in real terms in the second quarter. In year-on-year terms, the growth rate was 2.4 percent. The global economic upswing has thus taken full hold also of the Austrian economy. Exports and investment were the main drivers of the expansion. Industrial production grew vigorously from a year before; capacity utilisation again exceeds its long-term average. Labour market conditions continue to improve. However, signs are mounting that the economic upswing may be slowing.