Lower Austria trade grows as high costs keep sector under pressure

Lower Austria’s trade sector recorded higher nominal sales in the first months of 2026, but rising prices and weak consumer demand continue to weigh on businesses, ORF reported. The Lower Austria Chamber of Commerce said the situation remained tense.

From January to May, nominal sales increased by 2.4 percent compared with the same period last year, according to an economic report by the Institute for Austrian Economics commissioned by the trade division of the Lower Austria Chamber of Commerce. The increase was 2.1 percent across Austria.

Nominal figures do not account for price increases. Adjusted for inflation, Austria’s overall trade sector recorded a 0.7 percent decline rather than the nominal 2.1 percent increase. The chamber did not provide a corresponding inflation-adjusted overall figure for Lower Austria.

Retail lags behind national figures

Retail performed more weakly. Nominal sales in Lower Austria rose by 1.2 percent in the first half of the year, compared with 1.9 percent nationwide. After adjusting for prices, Austrian retail sales fell by 0.1 percent.

Employment in Lower Austria’s retail sector also declined. The number of employees fell by 0.7 percent compared with the first half of 2025, according to the chamber.

Franz Kirnbauer, head of the chamber’s trade division, attributed the development partly to continued consumer caution. Businesses were also facing high costs, he said, adding that there was not yet evidence of a sustainable recovery.

Wholesale and automotive sectors perform better

Wholesale recorded the strongest growth in Lower Austria. Nominal sales rose by 3.2 percent from January to May, the highest increase of any Austrian state, according to the chamber. Nationwide, wholesale sales increased by 1.7 percent.

Employment in Lower Austria’s wholesale sector rose by 0.3 percent in the first half of the year, while it fell by 1.1 percent across Austria. Lower Austria was the only state to record an increase, the chamber said.

The automotive sector also posted stronger growth. Nominal sales in Lower Austria increased by 5.6 percent from January to May, compared with 4.7 percent nationwide. Employment rose by 1.9 percent in Lower Austria and by 0.8 percent across Austria.

After adjusting for prices, Austria’s automotive sector was 3.4 percent above its level a year earlier.

Chamber calls for measures to support demand

The chamber said a broad recovery in trade was not yet in sight. Real wholesale sales across Austria were 1.9 percent below the previous year, while employment in the country’s overall trade sector fell by 0.3 percent in the first half of the year.

The Lower Austria Chamber of Commerce called for measures to strengthen purchasing power and reduce the cost burden on businesses. The key, Kirnbauer said, was to turn nominal sales increases into real growth.