Wholesaling: Business Climate Deteriorates But Remains Favourable

In wholesaling the business climate deteriorated in October, but remains favourable. Wholesalers were less satisfied with their current business situation. Their expectations were also somewhat less optimistic than last month. According to figures from the German Federal Statistics Office, turnover in July rose by 3.7% (price-adjusted) compared to the same period a year previously. In the October survey wholesalers remained satisfied with developments in turnover on balance. Although reports of high inventories were more frequent, there are still more firms planning to ramp up their ordering activity than to scale it back. The index of wholesaling sales prices rose in September by 3.4% compared to the same period in the previous year. According to firms' reports, sales prices continued to rise in October. Survey participants also expect scope to adjust prices in the months ahead. In July the number of staff employed in wholesaling increased by 1.4%. Wholesalers plan to recruit additional staff in the months ahead, albeit to a slightly lesser extent than in September.