Retailing: Weaker Business Expectations

The business climate indicator for retailing fell in August for the second time in a row. After a positive second quarter and a still quite strong July, the current business situation has lost some momentum. Sales revenues were only slightly higher than in the previous year. With regard to the business outlook, the survey participants were more sceptical than in the previous month. In view of the slight increase in inventory pressure, retailers plan to exercise caution when placing orders. However, their personnel plans foresee an increase in the number of employees. According to the surveyed companies, there will be scope for price increases in the coming months. Given the almost unchanged low savings rate of private households, however, the prospects for retailing are still good.