Economic activity based on the weekly GDP indicator (WWWI) declined by 0.6 percent compared to the previous year in July (calendar weeks 27 to 30, 3 to 30 July) and by 0.7 in the first half of August (calendar weeks 31 and 32, 31 July to 13 August).

According to the WIFO Flash Estimate, Austria's economic output declined in the second quarter of 2023, having previously stagnated since mid-2022. In particular, the decline in gross value added in various service sectors, in construction and in industry had a dampening effect. For the third quarter, leading indicators point to a renewed decline in GDP.

"The subdued course of business at the beginning of the year in the retail sector has continued in the recent months and in some cases cooled even further. This is dampening the sentiment of retailers. Consumers also remain cautious despite a slight easing in inflation", says WIFO economist Jürgen Bierbaumer.

According to the latest WIFO Flash Estimate, Austria's economic output declined by 0.4 percent in the second quarter of 2023 compared with the previous quarter. Value added declined in industry and construction, while some service sectors expanded. On the demand side, the decline in private household consumption and gross fixed capital formation dampened the overall economy.

Austria's residential real estate market took a clear turn in 2022. After several years of practically uninterrupted price growth, there have been signs of price stagnation for the first time since the early summer of last year, and at the turn of the year even of initial price declines.