Retailing (Germany):
Outlook again cloudier

In retailing the positive assessments of the business situation clearly gained ground but pessimism regarding the business outlook reached a 12 month high and was particularly strong in non-durable consumer goods and in food and beverages. With increased inventory pressure more firms intend to reduce their order volume. The increase in prices continued and the survey responses indicate that further increases are expected in both the non-food area and in food and beverages in the coming months. A slight rise in the portion of survey participants that expect staff reductions was registered, but at 7% this portion is still considerably lower than 12 months ago. Eastern German retailers also assessed their current business situation more favourably than in the previous month and also looked more sceptically into the future. Although they managed to reduce excess inventories ,their ordering plans are again more restrictive. Nevertheless, they saw scope for price increases.