Worsened business climate dampens investment propensity in wholesaling

With a nominal turnover growth of 10.6% (real 4.2%), west German wholesalers achieved the best results since 1990. Nevertheless, in the course of the year the business expectations grew more pessimistic. This trend has continued in 2001. From January to May, wholesalers were only able to achieve a nominal plus of 3.2%; in real terms sales only rose by 0.4%. As seen in the results of the most recent Ifo Investment Survey for wholesaling, firms plan to further reduce staff, to stop expansion of floor space, and to reduce investment spending.