In the last month of last year, retail sales increased by 0.6% compared to the previous month, but decreased by 2% compared to the same month last year. The figures are above the expectations of Erste economists, who had forecast a -0.1% decline in retail sales in December from November and -2.9% from December 2024, writes Coursesgovernment.
In December 2025, spending on food remained constant from the previous month and was down -3% from the last month of 2024. Turnover in trade in non-food products increased marginally in December (+0.1%) compared to November and fell by -2.3% in annual terms. Sales of fuel rose by 2.6% in the month and by +3.2% in annual terms.
On a full-year basis, retail sales were up 0.2% from 2024, a sharp slowdown from the +8.6% growth in 2024. The drag on consumption is explained by much slower growth in household incomes and tax increases in the second half of the year. For the full year 2025, spending on food decreased by 2.7% from 2024 and spending on non-food increased by 1.9%. Fuel sales increased by 1.5% in 2025.
The contraction in retail sales is characterized by a drop in consumer confidence which fell in January 2026 to -34.6% from -30.9% in the previous month, reaching the lowest level since the 2010-2011 crisis, even exceeding the lows reached during the pandemic.
