Retailing (Germany):
Inventory pressure eases

In retailing the business situation in May was similar to that in April, with a less favourable assessment in the non-food area being offset by clearly more positive appraisals in the food and beverage sector. Confidence in the expectations abated somewhat in both areas. Since, on the other hand, inventory pressure continued to decrease, order plans were contractive only in a few instances. Retailers of food and beverages even plan strong restocking and anticipate perceptible price increases in the coming months. On average, retailers will increase staff levels, according to the survey responses. Unlike the federal average, the current business situation deteriorated for eastern German retailers while the outlook continued to brighten. Although inventory pressure also weakened, the firms still plan to exercise caution in their order activity. Prices should increase somewhat.