Wholesaling (Germany):
Waning confidence in industrial B2B

The business situation in wholesaling worsened for the third time in succession although the positive assessments still clearly hold the balance. This is due to a weakening in industrial B2B, but a slight improvement occurred in the consumer goods area. Inventories were seen by more firms as too large. The survey participants, however, are still confident regarding the future and plan to place more orders than they did during the corresponding, previous-year period. Also the number of employees is expected to rise. Price increases were planned a little less frequently than in previous surveys. Wholesalers in eastern Germany reported a sharp improvement in the present business situation. However, in spite of a further increase in sales an involuntary reduction in inventories occurred. In the coming months, the firms expect business to improve further, and their plans point to expansive order activities. Prices should continue to increase.