Austria faces rising invoice delays amid economic downturn

Austrian businesses are facing a deteriorating economic climate, characterized by a significant decline in payment reliability. According to the Kreditschutzverband KSV1870, one in five invoices (20 percent) in Austria is now being paid late. This trend is attributed to a weak economy and reduced consumer spending, with 51 percent of surveyed companies reporting that private individuals are spending less than they were three years ago.

The situation is particularly acute in the media, publishing, gastronomy, and construction sectors. Business sentiment has hit its lowest level since 2020, with only 42 percent of companies rating their current situation as positive. Furthermore, the average payment duration for corporate clients has increased by four days compared to the previous year.

Public sector entities are also contributing to the delay, with the federal government, states, and municipalities frequently exceeding the legal 30-day payment target. In the state of Burgenland, the average payment duration reached 37 days.

In related corporate news, Eisbär Sportmoden has extended its partnership with the Austrian Ski Federation (ÖSV) for four years, becoming the exclusive headwear provider for the team. However, the company has also announced it will cease production in Upper Austria by the end of the year, relocating manufacturing to Poland and China, which will result in the loss of 14 local jobs.