Wholesaling: Business Climate Improves

In wholesaling the business climate improved again. Wholesalers were more satisfied with their current business situation than last month. Optimism about the next six months also grew slightly. Wholesalers, by contrast, were far less satisfied with their turnover than during the same period last year. While the period from 2014 to 2016 was characterised by fluctuating change rates, wholesalers posted consistent revenue gains in 2017. On a price-adjusted basis, turnover rose by 3% in the first three quarters of last year. In 2017 this development was mainly due to the good economic situation. Full order books in manufacturing, a solid domestic economy in the EU area and a favourable employment situation supported consumption. Given the rise in inventory overhangs, order plans were less frequently geared towards expansion this month. Fewer wholesalers reported implementing price increases. Figures from the German Federal Statistics Office also confirmed a less dynamic development in sales prices in December. In the months ahead, by contrast, fewer wholesalers expect to implement price hikes. The number of employees grew steadily over last year (by 1% to 1.5% on a monthly basis). Many wholesalers also plan to recruit additional staff over the next three months.