Services: Significant increase in business climate index

In the services, the business climate clearly improved for the first time in six months. While the current business situation was assessed more favorably and continued to be outstandingly positive, confidence with regard to the six-month outlook, which had weakened recently, increased again. However, the business expectation indicator is still below its long-term average. According to official figures, nominal sales in the fourth quarter of 2018 rose by 4% year-on-year. As in the past, the survey participants reported an increase in sales – both in recent months and in comparison with the previous year. For the fourth quarter of 2018, the Federal Statistical Office reported an increase in the number of employees in the service sector of 1.6% compared to the previous year. This signals a further slowdown in employment growth. Due to the still relatively large order backlogs, the survey participants reported a further increase in the number of employees in the previous month. Although sales expectations are less optimistic – for the fourth month in succession – they are still above average. Accordingly, the surveyed companies intend, on balance, to increase their staff levels.