Service Sector: Confidence Grows

In the service sector the companies surveyed were more satisfied with their current business situation. The corresponding balance points were at a high level in December and far above their long-term average. Business expectations were slightly more cautious, with the indicator reaching its highest point in the year and the same level as last year. The business climate indicator rose as a result, reaching its highest level in over a year. According to the German Federal Statistics Office, turnover rose by 6.2% (nominally) in the third quarter compared to the same period of the previous year. According to service providers, this favourable development in turnover continued. Service providers remained satisfied with their order intake. Many firms hired more staff in recent months and employment rose by 3% in the third quarter compared to last year, according to official statistics. Since they expect demand to pick up in the first quarter of 2018, service providers are planning to hire additional staff. They also plan to increase prices for the services provided.