Wholesaling (Germany):
Situation improved; outlook cloudier

In wholesaling the business climate worsened, but firms assessed their business situation more favourably than in the previous month. They are considerably more reserved, however, regarding business development in the next half year. The more positive appraisal of the business situation is attributable to consumer goods wholesaling. Both in the durable and non-durable consumer goods areas the business situation improved somewhat. For the next six months, however, wholesalers active in the consumer goods field expect a weakening in business activity. Especially in the case of consumer goods that react to business-cycle fluctuations, such as electrical household appliances, the traders fear a worsening of the business situation and intend to order considerably fewer new products. In industrial B2B wholesaling, the business situation developed unevenly: wholesalers of intermediate goods reported a more unfavourable situation while the wholesalers of capital goods regard the situation a little more positively. With regard to business activity in the coming half year, wholesalers in industrial B2B are even more sceptical on the whole than they were in September. They plan to limit orders of new goods and do not expect to be able to command higher prices. Of particular note are the results of the construction-related wholesale areas: both the business situation and the business expectations improved here. Distributors of devices for electrical installations and wholesalers of installation requirements for gas, water and heating reported a good business situation. This indicates that construction activity in the fitting-out trade is also positive.