Wholesaling: Increased Inventory Overhangs

In wholesaling the business climate deteriorated in May after having risen to its highest level in a year in April. The wholesalers assessed both their current situation and their expectations for the coming months somewhat less positively. With only a slight increase in sales, inventories increased again. Accordingly, reluctance to place new orders increased. The sales prices are likely to be raised less often than was expected in the last survey. In addition, personnel plans are more reserved.