Services (Germany):
Cooling of the business climate

In the service sector the business climate indicator fell again. Both the present situation as well as the six-month outlook were assessed more unfavourably by the survey participants. There was hardly any rise in demand for the offered services in comparison to the previous month. The survey participants plan to expand staff levels more cautiously than in previous months. In the area of goods transport on the roads, the business climate chilled significantly. The business situation was assessed considerably more negatively. For the coming months the firms anticipate weaker business. Although they are dissatisfied with their order stocks, they see themselves forced to increase prices as a result of rising fuel costs. In the restaurant trade the business climate has also clearly worsened. Demand lags behind that of the previous year and in the coming three months the survey participants foresee no increase in sales. In data processing the business climate remains largely unchanged, with the firms reporting a good business situation. For the coming half year they are confident although a little less optimistic than in recent months. Nevertheless, they anticipate further sales increases and plan to expand staff levels.