A comment of the Ifo business climate retailing

Retailing in Germany is experiencing a crisis; since mid-2002 nominal sales have been declining, among other things. However, the Ifo business climate for retailing showed a positive development in December 2004 and January 2005. Since the Ifo business climate is an indicator for the course of the business cycle, this only means that the pressure on retail sales seems to have declined. Whether this means the end of the long-standing negative trend in retail sales remains to be seen.