Retail Trade Contributes to Cyclical Stabilization

Vigorous growth of the distribution sector in the past has strengthened its position within the Austrian economy. Lively consumer demand and rising receipts from tourism have boosted retail sales in the first half of 1992 (+3.2 percent in volume, year-on-year). In July and August, however, sales on average fell short of last year's high level, partly due to the unusually hot and dry weather. Wholesale turnover in the first six months (+1 percent in volume) was dampened by the sluggishness of the international business cycle. Christmas retail sales are projected to exceed last year's volume by about 2½ percent.