Retailing: Mounting Pessimism

The Business Climate Indicator in retailing declined for the third time in succession in March, falling almost back to the level of February 2017. Confidence in the retailing sector has deteriorated significantly, partly because of the harsh winter weather. In addition, business expectations display mounting pessimism for the first time since September last year. Nevertheless, retail prices are likely to have been raised more frequently than in the previous month. Growing inventory pressure was reflected in more restrictive order plans. Significantly fewer companies reported that they plan to increase staff levels.