Service Sector: Slight Increase in Climate Indicator

In the German service sector, participants rated their current business situation, which is at a good level, somewhat less favourably in May. However, as companies were more optimistic about the six-month outlook, the overall business climate improved slightly, allowing the overall indicator to end its four-month downward trend. An increase in demand compared to the previous months was reported less frequently by the surveyed companies. Satisfaction with order backlogs, also at a high level, weakened. Compared with the same month of the previous year, sales have risen sharply, and in many places increasing sales were expected in the coming months. The expansive personnel plans were accordingly adjusted upwards. However, companies expect marginally less scope for price increases.