Business Climate in German Retail Improves Slightly
The ifo Business Climate in Germany’s retail improved a little in May, finds the latest ifo Institute survey. The index rose to -13.3 points, up from -14.5 points in April. While this reflects slightly better business expectations, the outlook for retailers remains pessimistic. The indicator for assessments of the current business situation remained unchanged at -2.1 points. “The European Football Championship is unlikely to deliver any noticeable sales impetus for retail as a whole,” says ifo expert Patrick Höppner.
“Only supermarkets and beverage retailers, as well as specialist sports stores, might feel a positive impact from this major sporting event,” Höppner says. In May, DIY stores, bicycle dealers, and retailers of electrical goods and electronic household appliances assessed their current situation as noticeably more positive. Business has also improved for car dealerships and in food retail. For consumer electronics retailers and furniture stores, however, the situation remains predominantly gloomy.
In many lines of retail business, prices are expected to continue to rise in the short term; this applies in particular to food retail and to retailers of electrical goods and electronic household appliances. “Prices for bicycles and consumer electronics products, on the other hand, might well fall in the near future,” Höppner says.
Publication
ifo Konjunkturperspektiven is a monthly German-language online publication that presents the latest results from ifo’s business surveys in the form of graphics and tables.
