Wholesaling (east):
Increased inventory pressure

The business situation of wholesalers in eastern Germany deteriorated after the clear upturn in February. Inventory pressure increased considerably. Since the business outlook has also worsened the enterprises see no reason to depart from their restrictive order policies. According to the responses, prices might be raised in the coming months. Both in west Germany (balance of 25%) and in east Germany (balance of 31%) the share of enterprises that expect staff reductions was higher than at the same time last year.