Retailing (Germany):
Business situation and outlook deteriorate

Following tendencies to improve in the two preceding months, retailers assessed their current business situation markedly more unfavourable again. Negative responses slightly prevailed again also in the food and beverage sector after a long time of a positive majority. The already high inventory pressure even increased slightly. As, in addition, the outlook for the next six months has clouded somewhat, order plans increasingly pointed downward. The rise in sales prices is expected to slow a bit, not so, however, for food and beverages. Although the current business situation improved in east Germany, the panel was as pessimistic about the business outlook as before. Order plans indicated restraint more frequently again. East German retailers saw again better chances for price increases in the near future.