Services (Germany):
Worsened business outlook

The business climate in the service sector continued to deteriorate, the indicator falling for the third time in succession. Behind the current decline, however, there are two countervailing developments: the service providers are a little more satisfied with their current business situation than in the previous month, but they are by far more sceptical regarding the outlook for the coming half year. The demand situation is more unfavourable, and the survey participants expressed complaints somewhat more frequently about too low order stocks. For the next three months they expect smaller turnover increases. In goods transport the business climate has cooled again. The business situation has been assessed more cautiously and also regarding the six-month outlook the survey participants are more sceptical. Sales were not increased over the previous year so clearly and order backlogs were assessed more sceptically. The pressure to raise prices has clearly abated, however. The advertising industry has assessed its present business situation a little more positively than in July, although the situation was considerably better 12 months ago. Sales of the previous year were not matched, and advertisers are not so optimistic regarding the business outlook. Nevertheless, most of the firms expect either a better or a stable business situation in the coming half year.