Retailing (Germany):
Pessimism increases

In retailing the business climate index fell considerably. Although the retailers evaluated their current situation only a little bit more unfavourably than in the previous month, they fear a considerably worse business development in the coming half year. Since more now consider stocks to be too large, they intend to keep on reducing their product orders. Price increases are also expected much more seldom. The business climate is especially unfavourable in the retailing of motor vehicles. The business situation is designated by the surveyed participants as poor, and also with regard to the six-month business outlook they are pessimistic. Turnover over the previous year was clearly assessed more negatively and firms plan to reduce their orders sharply.