Retailing (Germany):
Business climate again improved

In retailing firms assessed their present business situation less negatively. They also do not view the business outlook as critically - as a result the business climate improved. The survey participants gave a similar appraisal of turnover as in the previous year and assessed inventories as too large somewhat less frequently. With regard to orders, however, retailers still plan to exercise caution. The number of survey participants who plan to increase or to decrease prices balances out. The business climate improved for both consumer durables and non-durables. On the other hand, in automobile retailing a setback occurred: After an improvement in the previous month, the business climate chilled again in January. The surveyed companies evaluated the present business situation and the business outlook more negatively. The government bonus for scrapping an old car was not yet perceptibly felt by the car dealers in January.