Service Sector: Current Business Situation Indicator Falls

Survey participants in the service sector assessed their current business situation slightly less favourably in June. Although this marked the indicator’s fifth slight consecutive decrease, it remained clearly above its long-term average level. A marginally lower number of survey participants are positive about their six-month business outlook. Overall, the business climate cooled down slightly. Fewer service providers reported an uptick in demand this month and they no longer expect it to pick up in the near future either. Satisfaction with the current order backlog is also declining. Compared to the same month last year, many service sectors reported higher turnover. Expansive personnel plans were downwardly revised slightly, but on balance still point to a marked upturn in recruitment. Fewer service providers saw scope for price increases this month.