Retailing (Germany):
Improved business situation

The business situation in retailing was more favourable than in the previous month. This is a result of more positive responses from the non-food sector; in food and beverages the business situation has worsened for the third time in succession. The firms assessed their business outlook more pessimistically and see no cause for loosening their restrictive order policies, especially in light of excess inventories. Price increases should accelerate in the coming months, especially among retailers of food and beverages. Retailers in eastern Germany assessed their current business situation and especially the six-month outlook more pessimistically than in July. Although inventory pressure has increased, their order plans are no longer quite so restrictive. The share of firms that anticipate price hikes has again increased.