Trend reversal

Austrians optimistic about earnings and costs

Thanks to wage increases and falling inflation, the shopping mood is slowly returning.

(Bild: stock.adobe.com)

After many months of worry, Austrians are slowly becoming more confident: according to a survey by Statistics Austria, more people expect their income to rise again for the first time since 2021. Conversely, the cost of housing and food is burdening fewer households.

Expectations for this year have improved in all areas of life. Specifically, 22% said at the end of the previous year that they would earn more this year, while "only" 21% feared their income would fall. In the two previous years, this ratio was much more negative. A good 57% expect their earnings to at least remain the same.

Apparently, the high wage increases in most sectors in the fall are now also having an impact on sentiment, with the tax reform leaving more of gross earnings in people's pockets. As a result, around 60 percent say they no longer want to postpone major expenditure, whereas a year ago more than half of households were still on a strict austerity course.

At the same time, the feeling of massive cost increases is diminishing. Instead of almost one in four, 20% of the 18 to 74-year-olds surveyed now say that their housing costs (rent plus energy) are a major burden. However, single parents and unemployed people are not experiencing any real improvement.

17% fear payment problems with their bills
In total, 17% fear that they will have payment problems in the next three months, particularly with their housing (rent, operating costs, credit). At the end of 2022, however, the figure was 27%.

44% of those who fear their income will fall will save money when shopping for clothes, food, other goods and services (e.g. going out to eat). This is also a slight improvement, as last fall one in two people still had to reduce their spending considerably. What is dramatic, however, is that three percent of people say that they have often or sometimes been unable to buy enough to eat. A good two thirds do not have to restrict themselves, 29 percent have enough, even if they do not always have what they want on the table. They therefore increasingly bought special offers or cheap brands.