With 1,718 company insolvencies in the first quarter of 2024, there were around 30 percent more cases than in the same period last year and around a fifth more than in the previous quarter, as preliminary data from the authority show. The service sector was particularly affected, followed by the construction industry and retail.
Services, construction and trade
If you compare the sectors, the most insolvencies in the first quarter of 2024 were in financial and other services (397), construction (330), retail (298) and accommodation and catering (242), with the number of According to Statistics Austria, insolvencies are generally highly dependent on the number of companies active in the individual economic sectors. The areas of information and communication (62) and material goods production (108) had comparatively few insolvency cases.
Fewer business start-ups
At the same time, intentions to start a business have decreased. Registrations of legal entities fell by around 13 percent to 16,053 in the first quarter compared to the same period last year. However, there were around 9 percent more registrations than in the previous quarter. Registration is to be understood as a declaration of intent and does not necessarily mean that economic activity will actually begin. Nevertheless, registrations are an important early indicator of economic development, according to Statistics Austria.
