Wholesaling (Germany):
Sceptical expectations

After the upward development in September, the business situation in wholesaling again trended downwards in October. The positive assessments held the balance only slightly; since reaching its apex in December of last year they have decreased by 24 percentage points. In the business expectations a slight scepticism now prevails for the first time in several months, also in industrial B2B. Excess inventories have been reduced somewhat, but firms intend to exercise caution in their order policies. The increase in prices is likely to persist, especially in the food and beverage sector. Increasing employment is planned only by a few firms. In eastern Germany the current business situation deteriorated even more clearly than on the federal level. Inventory pressure increased even more. Since the outlook has further worsened, the firms have revised their order plans downwards. Nevertheless, they still intend to take on new staff. They also see more scope for raising prices in the coming months.