Austria Enters Recession

(Patria) - The Austrian economy entered a recession in the third quarter, mainly due to reduced household and state consumption, according to an estimate by the WIFO Economic Institute.

Gross domestic product decreased by 0.6 percent in the period from July to September compared to the previous three months when it fell by 0.8 percent, the institute calculated.

A GDP decline for two consecutive quarters signifies a recession.

Household consumption fell by 1 percent in the third quarter, three times stronger than in the period from April to June, WIFO determined.

State consumption also decreased, by 1.3 percent, reversing the trend from the previous three months when it increased by 1.5 percent, Hina reports.

The decline in gross fixed capital investment was significantly milder, amounting to 0.4 percent, the institute calculated.

In the period from April to June, investments decreased by 2.4 percent, according to them.

Exports increased by 2.4 percent, while in the spring quarter it recorded the same percentage decrease.

Imports also increased, by 2.5 percent, after a one percent decrease in the previous three months.

On an annual level, GDP fell by 1.2 percent, at almost the same pace as in the previous three months.

The Statistical Office separately announced that producer prices in September fell year-on-year for the third consecutive month, by 3.8 percent.

In August, they decreased by 2.4 percent, and in July by 1.3 percent.

However, a monthly comparison shows a slight acceleration in the growth of producer prices, from 0.3 in August to 0.4 percent in September.