Service Sector: Turnover Rises

Sentiment firmed marginally in the service sector, with the business climate indicator reaching its highest level this year to date. Survey participants continued to report a favourable current business situation, with the balance figure climbing to almost 50 points. In terms of the six-month business outlook, their assessments were slightly less optimistic, but remain confident. Over half of the service providers surveyed reported an increase in turnover compared to last year. This is in line with official statistics, which indicated a 5% increase in nominal turnover in the first half year compared to the same period a year previously. Many service providers expect demand to pick up in the months ahead. Survey providers continued to report overflowing order books this month. Accordingly, service providers continue to see opportunities to raise the prices of their services in the months ahead. They also plan to recruit additional staff, but employment growth will be below average. The German Federal Statistical Office reports a 3% upturn in recruitment compared to last year.