Service Sector: Incoming Orders Hit Record High

In the service sector the business climate indicator declined again, but remained at an extremely high level. The majority of service providers described their current business situation as favourable. They reported higher sales both compared to last month and to the same period last year. Order backlogs hit a new record high for the third consecutive month. The service providers surveyed also expected further sales growth in the next three months. The survey results suggest that price increases can also be expected in the months ahead. In view of their already very positive business situation, the service providers surveyed expressed slightly more caution about their general business prospects. For the third month in succession, they also plan to scale back recruiting.