Service sector: Current Business Situation Turns Less Favourable

In the service sector survey participants were less optimistic about future business. At the same time, fewer service providers were satisfied with their current business situation. The business climate deteriorated for the third month in a row, but the corresponding indicator nevertheless remained above the long-term average. According to official figures, nominal sales in the third quarter rose by almost 5% year-on-year. This fairly high growth is also reflected in service providers’ responses regarding their sales development. On balance, approximately one in three participants stated that sales were higher than in the previous year. This statement applies to both the third and fourth quarters, meaning that a similar nominal sales development should be achieved in the fourth quarter. Satisfaction with the current order backlog declined, but sales were still expected to increase in the months ahead. Accordingly, personnel planning continued to focus on expansion. For the third quarter, the Federal Statistical Office stated that the number of employees had risen by 1.8% compared to the previous year. This marks the lowest growth since the first quarter of 2013. According to the survey results, the prices of the services offered will also be raised over the next three months.