Retailing (Germany):
Business climate cools further

The business situation in German retailing received the most unfavourable marks in the past two years. This resulted from a worsening in the non-food sector, although an improvement was reported in food and beverages. With regard to the six-month outlook, the retailers were more sceptical than in the previous month especially in the non-food area. Since inventory pressure has increased further, the retailers will exercise caution in their order activity, in particular with regard to non-durable consumer goods. Prices have been raised, and a further increase is expected, especially in food and beverages. Retailers in eastern Germany again assessed their current business situation more unfavourably than in the previous month; scepticism with regard to the business outlook has declined, however. With reduced inventory pressure, order plans are no longer quite so restrictive. Prices are expected to increase again, but the share of firms that anticipate increases in the coming months has decreased somewhat.