Austria retail sales stagnate as inflation offsets nominal growth

Austrian retail sales experienced stagnation in the first half of 2026. While nominal revenues rose by 2.1%, real growth was nearly flat at 0.1% after adjusting for inflation. This lack of momentum is attributed to geopolitical uncertainty and rising energy costs linked to the Iran-related conflict.

Sector performance varied significantly. Food and beverage sales saw a real increase of 1.1% to 2.5%, whereas the non-food sector remained stagnant or declined. Specifically, the electronics and furniture markets saw notable decreases, while books, magazines, and sporting goods experienced growth.

In the Salzburg region, the situation was even more pronounced; despite a nominal increase of over 2%, real sales shrank because inflation rates exceeded the growth in revenue. Alexander Schwarzbeck of the Salzburg Chamber of Commerce noted that retail earnings are failing to keep pace with rising costs.

Although the national inflation rate slowed to 2.8% in July, consumer caution persists. WIFO predicts a modest real economic growth of 0.9% for 2026, with private consumption expected to grow by only 0.4%.