Wholesaling (Germany):
Unfavourable business situation

The business climate index in wholesaling rose slightly in January, thus breaking with the downwards movement of the previous months. Although the firms are just as dissatisfied with their business situation as they were in December, their expectations of business developments in the coming half year are somewhat less reserved. Within the wholesaling sector, the business climate developed differently, however. In the consumer goods sector it brightened while clearly chilling in the industrial B2B sector. The wholesalers of consumer goods reported a more favourable business situation. Turnover over the previous year was assessed positively and fewer firms now regard inventories as too large. Also with regard to future business, the survey participants are less sceptical. On the other hand, in industrial B2B the business situation has deteriorated and thus has run parallel to developments in manufacturing. The business outlook in industrial B2B was assessed more pessimistically than in December. Firms in this sector accordingly plan to reduce their orders for goods.