After many months of worries, 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 costs of housing and food burden fewer households.
Expectations for this year have improved in all areas of life. In concrete terms, at the end of last year, 22 percent said they would earn more this year, while ‘only’ 21 percent still feared less income. In the previous two years, this relationship was much more negative. More than 57 percent expect their income to remain at least the same.
Apparently, high wage increases in most industries in the fall are now also having an impact on sentiment, and tax reform is keeping a larger share of gross revenues in the pocket. About 60 percent indicate that they no longer want to postpone major expenses; a year earlier, more than half of households were on a hard cutback path.
At the same time, the feeling of enormous cost increases is decreasing. Instead of almost one in four, 20 percent of 18 to 74-year-olds surveyed indicate that their housing costs (rent plus energy) are a major burden. However, single parents and the unemployed see no real improvement.
17 percent fear payment problems with their bills
A total of 17 percent fear they will have payment problems in the next three months, especially when it comes to housing (rent, operating costs, credit). However, at the end of 2022 this was even 27 percent.
44 percent of those who fear declining income respond by saving money when buying clothes, food, other goods and services (e.g. local visits). This is also a slight improvement, because last fall one in two people had to cut back significantly on their expenses. What is dramatic, however, is that at least three percent of people have often or sometimes not been able to buy enough food lately. More than two-thirds do not need to limit themselves; 29 percent have enough, even if it is not always what they want, on the table. They therefore increasingly bought special offers or cheap brands.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
