Retailing (Germany):
Clearly improved business climate

A sharp improvement of the current business situation was reported in retailing, after a worsening had occurred four months in succession. According to the assessments of the enterprises, also the business outlook for the coming half year has clearly brightened. This applies to both the non-food as well as to the food and beverage sectors. Although inventory pressure has abated somewhat, the retailers still intend to exercise caution in their order activity. According to the responses, prices will rise perceptibly in the coming months, particularly for food and beverages. Retailers in eastern Germany also assessed their business situation more favourably than in the previous month, but their expectations are increasingly marked by scepticism. Since in addition inventories are increasingly seen as too high, order plans have been revised downwards. Further price increases are planned by the enterprises.