Retailing: Business Outlook Remains Positive

The business climate indicator for retailing edged downwards in May. Assessments of the current business situation, which were excellent in April, were slightly less favourable this month. The continued and marked rise in consumer prices has had a slightly negative impact on consumer spending. The revenues generated by the retailers surveyed were slightly above the figure for the same period last year. Although inventories were deemed too large by survey participants in many cases, they did not seem to see any reason to further restrict their ordering activity. As far as the months ahead are concerned, retailers remain confident. They plan to continue to recruit staff, although to a lesser degree than last month. Sales prices will continue to rise. The economic framework conditions will stay favourable for retailing overall this year. Collectively agreed wages and transfer income have risen markedly, while the labour market situation is still good. On top of this, interest rates remain low and financing conditions are favourable.