Wholesaling: Business Climate Cannot Match Record High

In wholesaling, the climate indicator was not able to repeat the very good results of the previous month. Although the traders were slightly more likely to expect a positive business development in the coming months, the current business situation was assessed somewhat less favourably. Nevertheless, the judgments of the current situation remained at an exceptionally high level. According to the Federation of German Wholesale, Foreign Trade and Services (BGA), wholesalers are now again participating more strongly in the overall solid economic situation in Germany. Furthermore, price dynamics should no longer hamper the wholesalers’ business as in previous years. The surveyed companies reported increases in sales more frequently compared to the previous month. However, inventories have increased, on balance, and presumably as a result an expansion in order quantities was also less noticeable than before. Wholesalers were able to implement price increases more often. In the coming months, however, price adjustments are less frequently anticipated. Personnel plans frequently remain growth oriented, so that new hirings are still to be expected.