Wholesaling: Business Situation Hits New Record High

In wholesaling the business climate improved for the third month in succession, reaching its highest level since December 2010. Assessments of the current business situation hit a new record high. Wholesalers also upwardly revised their business expectations. The wholesalers surveyed were highly satisfied with trends in their turnover. According to official statistics, (real) turnover rose by 7.7% in March after falling slightly in February. After the increase in sales prices seen at the beginning of the year, two thirds of the wholesalers surveyed reported no change in prices over the current reporting period. According to the Federation of German Wholesaling, Foreign Trade and Services (BGA), increases in sales prices were mainly due to higher prices for energy resources. Lower energy prices should already have led to moderate developments in sales prices as a result. The index for wholesale sales prices published by the German Federal Statistics office fell by 0.7% compared to last month. The number of survey participants expecting sales price increases in the months ahead also declined. Inventory levels dropped in June and are now significantly below their long-term average. Wholesalers are planning to clearly expand their order volumes as a result. In March the number of employed persons rose by 0.9% compared to the same period the year previously, according to official statistics. ifo's Business Survey results reveal that more wholesalers plan to recruit additional staff than in May.