Wholesaling (Germany):
Rising price trend continues

The business situation in wholesaling was again evaluated more positively than in the previous month, although consumer durables and non-durables weakened. The expectations show no major change coming in the near future. Although the enterprises feel their stock levels are too high, they did not consider cuts in orders to be necessary. The share of firms that expect to increase prices has increased again. According to the responses, prices for food and beverages will increase noticeably. Wholesalers in eastern Germany also reported an improvement in their business situation, but they look more sceptically to the future than in the previous month. Although excess inventories have been reduced somewhat, order plans have been revised downwards. However, they still see scope for price increases in the coming months.