The U.S. national team saw a would-be goal ruled out in the first half as it was kept scoreless for the second straight match, falling on a Marc Janko strike.
Geoff Cameron had a goal-bound header — deflected by a clear handball — appear to go over the line in the first half, but the referee ruled it was not a goal.
Austria then scored on a beautiful sequence that ripped apart the U.S. defense, as Marc Janko connected with a cross from Gyorgy Garics in the 33rd minute to make the score 1-0.
Bayern Munich standout David Alaba started the sequence with a beautiful pass to the wing, where Garics found space to hit a dangerous ball toward the front of goal. John Brooks whiffed on a clearance attempt, and Janko streaked in front of Omar Gonzalez to beat Tim Howard.
The Americans nearly found an equalizer just before halftime on two occasions. Jozy Altidore set up Michael Bradley on the doorstep, only to have Bradley's shot blocked well. Just two minutes later, Altidore got a shot off that missed by inches.
The match saw U.S. coach Jurgen Klinsmann deploy Geoff Cameron at right back, where the player starts for English Premier League side Stoke City. Cameron enjoyed a strong showing at the position, which could be a sign of things to come.
One player who struggled on the day was Jermaine Jones, who committed several turnovers and looked out of form for the second straight match.
Klinsmann deployed Aron Johannsson in a playmaker role in a 4-2-3-1 formation, and the AZ Alkmaar striker showed well there, playing underneath Jozy Altidore and combining effectively with his former club teammate.
Howard made a difficult save in the match's final seconds, but that only served to keep the score a respectable 1-0.
Despite the loss, the United States finished 2013 with the best record in national team history (16-4-3). The Americans played to a scoreless draw against Scotland on Friday in their other friendly during the year's final international break.