Business Climate in German Retail Improves Markedly Before Easter
The ifo Business Climate in retail brightened noticeably in March. The indicator for assessments of the current business situation rose to -7.3 points, up from -18.1 points* in February. There was a clear improvement in business expectations, too. “The pessimism that has been such a feature of recent times is receding. Business in the run-up to Easter has apparently brought a ray of hope for many retailers,” says ifo expert Patrick Höppner.
DIY stores, bicycle dealers, and clothing retailers are more positive about their business situation than in the previous month. Food retailers also experienced an upturn. “Retailers can rely on the Easter business, especially when it comes to confectionery,” Höppner says. Computer and software retailers and car dealerships saw a slight deterioration in their business situation.
On balance, the number of retailers planning price increases in the coming months is lower than at any point in the past three years. The proportion of retailers affected by supply bottlenecks also declined: in March, it was 29.1% of retailers, down from 32.6% in February. “This means the uncertainties in maritime trade due to the crisis in the Red Sea are still of minor consequence for many retail supply chains,” Höppner says.
*Seasonally adjusted
