Retailing: Increasing Scepticism

The business climate indicator for retailing fell in January, slipping back into negative territory for the first time since February 2015. Still, the balance was above the long-term average. Despite the less favourable sales trend, the mood among the surveyed companies regarding the current business situation remained almost unchanged. By contrast, business expectations for the next six months deteriorated noticeably. Retailers’ ordering plans continued to be cautious in January. The latest survey results indicate that price increases are planned somewhat less frequently than in December. According to estimates by the Federal Statistical Office, the retail sector closed 2018 with real sales growth of 1.5% – an estimated nominal increase of 3.3%. In 2017, the corresponding sales growth was 2.3% in real terms or 4.3% nominally. On an annual average, retail prices were 1.8% higher than in the previous year.