Retailing (Germany):
Business climate remains frosty

In retailing the business climate index fell slightly. The retailers are a little less dissatisfied with their business situation than in the previous month. The firms indicate that they will not be so restrictive in placing orders, but they are more sceptical in their assessments of the business outlook. Price increases are now planned more seldom by the retailers, similar to wholesaling. Upward price pressure has thus abated perceptibly in both trading sectors. In car retailing, the business climate has not recovered much from the dramatic worsening of the previous month; turnover is below that of the previous year. Also below previous year levels is the turnover of service stations. A clear worsening of the business climate occurred in retailing of entertainment electronics. After sales in the May, June and July were clearly above the level of last year, in August the sales of the previous year were not matched.