Retailing: Business Outlook Continues to Deteriorate

The business climate indicator for the retail sector fell in July for the second consecutive time, now displaying the worst value since April 2015. The slightly improved current business situation as a result of positive sales development was again offset by gloomy business expectations. In light of increased inventory pressure, retailers intend to place fewer orders. According to the survey results, selling prices will tend to rise in the coming months. The survey participants increasingly plan to augment their workforce.