Retailing (Germany):
Business climate slightly improved

The business climate index in retailing recovered somewhat from its strong decline in November. Although the retailers evaluated their present situation a little more unfavourably, their scepticism regarding future business has decreased. Nevertheless, they plan to exercise more restraint when ordering new products. Further price hikes are no longer planned by the retailers. For both consumer durables and non-durables, retailers are prepared for more price concessions. In the food and beverage sector, further price increases are still planned; the upward price spiral has been weakening continuously since the summer, however. The survey participants have assessed their present situation somewhat less negatively and are also no longer as pessimistic regarding the future outlook as in November. Car retailers have reported a very poor business situation. They no longer see the six-month outlook quite as pessimistically as in November, although they continue to be extremely reserved. On the whole, the business climate in retailing - despite recent improvement - has tended to worsen over the course of the year. A boost to the economy via retail consumption is currently not detectable.