Economic downturn affects craft sectors in Austria and East Bavaria

The craft and trade sectors in Austria and East Bavaria are facing economic challenges, according to recent quarterly reports for 2026.

In Austria, the butchery industry has seen a decline in performance. A study by KMU Forschung Austria for the third quarter shows that 35% of butcheries reported declining revenues compared to the previous year, with 28% describing their current business situation as poor. While nominal revenue fell by 0.7% in the first half of the year, real revenue—adjusted for a 1.3% average increase in selling prices—dropped by 2.0%.

Similarly, the craft sector in East Bavaria is struggling to find a turnaround. The business climate index for the region fell by two percentage points to minus one in the third quarter. Approximately 30% of businesses reported a decline in orders, and 35% of automotive businesses specifically noted revenue decreases. Georg Haber, President of the Lower Bavaria-Upper Palatinate Chamber of Crafts, noted that high costs regarding taxes, bureaucracy, energy, and mobility continue to pressure businesses.