Retailing (Germany):
Increased scepticism

In retailing the business situation improved again, but in non-durable consumer goods a decline was reported. With regard to the six-month business outlook, retailers were clearly more cautious than in the previous months of the year. Since they have managed to reduce inventory overhangs, they plan further loosening of their restrictive order activity. Prices are expected to rise both in the non-food sector and for food and beverages. A decrease in employee numbers was considered by only very few firms. The business situation in eastern German retailing was again assessed a little less positively than in the previous month. Also the business expectations displayed increasing scepticism. Since inventories have unintentionally grown, more firms now plan to reduced their order volumes.