Retailing (east):
Continuing inventory pressure

In west German retailing a less unfavourable assessment of the current business situation – in the food and beverage sector positive judgements gained the upper hand – was offset by heightened scepticism regarding the business expectations. Similar responses came from retailers in east Germany. No major changes in the excess inventories were reported in both parts of Germany, and retailers in the west even plan to reduce their order volumes. There were different appraisals, however, with regard to future price setting: While the west German retailers expect to make some price concessions in the coming months, their colleagues in the east see some scope for price hikes. The share of firms that foresee staff reductions in the future (west Germany: balance of 12%; east Germany: balance of 15%) decreased somewhat.