Retailing (Germany):
Increased inventory pressure

In retailing the disappointment over the business situation increased again. The assessments in the non-food area were especially negative whereas food and beverage retailers were to a large extent satisfied with their business. With regard to the business outlook for the coming half year, the firms were again somewhat more confident. Since inventory pressure has increased, however, they plan to place fewer orders than they did 12 months ago. Price increases occurred and are likely to continue, in a weakened form, in the coming months. In food and beverages especially, price hikes are probable. Retailers in eastern Germany also assessed their current situation more unfavourably. The supplies of unsold products were considered to be too high by more firms so that the order plans were contractive on the whole, despite the clearly improved business outlook. Prices will continue to increase strongly, according the survey participants.