Wholesaling: Expectations Continue to Cloud Over

In wholesaling expectations regarding business development were scaled back for the seventh month in succession. Since assessments of the current business also deteriorated marginally – although still at a high level – the business climate indicator for wholesaling fell slightly in June. The retailers surveyed were divided over developments in turnover compared to the same period last year: a good third of survey participants were delighted with the higher revenues: a good third reported higher revenues, while almost the same number reported falling turnover and the remaining third described stable turnover levels. According to the German Federal Statistical Office, nominal turnover in March fell by 4.4%. Wholesalers planned to expand their order volumes on balance, partly due to less frequent reports of high inventories. Confident expectations that price hikes can be implemented in the next three months presumably also played a role. A higher number of wholesalers than last month were already able to implement price increases in May. The wholesale price index rose more sharply this month than previously too at 2.9% (compared to same month of previous year).