Retailing (Germany):
Stable business climate

The business situation in retailing has improved. This is a result of more positive responses from the non-food sector; in food and beverages the assessments were much less positive than in June. With regard to the future business developments, they expressed a generally weakened confidence. This was also reflected in their order plans, which despite weakened inventory pressure are still geared towards restrictions. Price increases should continue in the coming months, with retailers of food and beverages again expecting price increases. Retailers in eastern Germany have also reported an improvement in their current business situation. Excess inventories have been reduced somewhat despite the sluggish demand. The firms are sceptical, however, regarding the outlook for the coming half year and plan to exercise more caution in their ordering policies. In the coming months there seems to be scope for additional price increases.