Wholesaling: Budding Optimism Continues

In wholesaling the climate indicator edged downwards in September, due to was slightly less favourable assessments of the current business situation, but remained at a high level. At the same time, the six-month business outlook improved slightly. Survey participants were largely satisfied with turnover compared with the same period last year. According to the German Federal Statistical Office, nominal turnover in wholesaling rose by 3.2% in the first half year of 2018, whereby this dynamic gained impetus in the second quarter. A slightly higher number of wholesalers assessed their inventories as too high in September, but the figure nevertheless remained below the long-term average. With figures falling slightly on balance, wholesalers plan to ramp up their ordering activities. Wholesalers also plan to recruit additional staff, albeit to a slightly lesser extent than last month. In the first half of 2018 the number of employees increased by 1.6%, which was less dynamic than in 2017 as a whole (2.7%). Widespread increases in sales prices were reported. Survey participants also expect prices to either remain stable or increase in the months ahead. Only 5% of the wholesalers surveyed plan to reduce their sales prices over the next three months. The index for wholesale sales prices rose by 3.8% in August, marking its biggest increase this year to date (2.4% on average since January).