Retailing (east):
Brightened business climate

The strong recovery of the business climate in eastern German retailing that began at the end of last year continued in May after a small interruption in April. Responsible for this was that the current business situation moved to a barely satisfactory level. But also the scepticism regarding business expectations abated clearly. Since the excess inventories grew despite lively demand, the enterprises intend to cut back their orders. According to survey responses, sale prices in both parts of Germany will weaken in the coming months. Especially western German retailers expect further staff reductions (balance: 21% of the enterprises); in eastern Germany responses on dismissals were smaller (balance: 11%).