Austria's economy stagnated quarter-on-quarter in Q2 2026, after expanding 0.2% in each of the previous two quarters, according to preliminary estimates. The stagnation reflected higher oil prices triggered by the Iran conflict, which interrupted the economic recovery. Household consumption weakened (-0.1% vs. +0.2% in Q1), while government spending also edged down (-0.1% vs. +1.6%). Gross fixed capital formation rose 0.4% after being broadly unchanged in the previous quarter. Net trade provided little support, with exports increasing 0.5% and imports rising 0.6%. On the production side, industrial output weakened (-0.1% vs. +1.3%) and construction contracted for a second straight quarter (-0.4% vs. -0.6%), while trade and tourism-related services recovered (+0.3% vs. -0.8%). Information, financial, insurance, and real estate services remained resilient (+0.8%). On an annual basis, GDP expanded 0.8%, easing from 0.9% in Q1.