Source link : https://love-europe.com/2024/10/30/austria/the-austrian-economy-is-on-thin-ice-snaps/
Looking ahead, there is little to suggest an imminent trend reversal for the Austrian economy. With the US economy gradually losing steam and the eurozone’s economic recovery slowing, both Austrian industry and trade are likely to remain under pressure. This is also reflected in survey-based leading indicators. The European Commission’s most recent industry survey revealed that order books are still thinning out, while inventories remain at high levels.
However, sentiment has not only been muted in industry lately, but also among consumers. Political uncertainty at home, resulting from the ongoing process of forming a new government, geopolitical risks and the fear of a weakening labour market do not provide a fertile breeding ground for major spending.
As a result, Austrians’ propensity to save has stood at its highest level since the Financial Crisis in September. At the same time, willingness to spend remains at levels that are significantly below the long-term average. However, strong wage growth of almost 8% year-on-year in 2023 and a further increase of 8% YoY in the first nine months of 2024 suggest at least a certain improvement in consumers’ spending mood, especially as inflation has continued to slow further. The sharp rise in nominal wages is therefore increasingly translating into real wage growth, thereby gradually restoring consumers’ purchasing power.
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Publish date : 2024-10-29 17:01:00
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The post The Austrian economy is on thin ice | snaps first appeared on Love Europe.
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Author : love-europe
Publish date : 2024-10-30 09:52:17
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