Wholesale in Germany Recovers From US Tariff Shock
Wholesale of raw materials, intermediate products, machinery and equipment in Germany has temporarily recovered from the tariff shock. In May, the business climate rose to minus 17 points, up from minus 33 points in April. “Sentiment among wholesalers was significantly less pessimistic again in May. However, in view of the unpredictable US customs policy, it would be too soon to sound the all-clear,” says ifo industry expert Ulrike Mandalka.
This specific segment of wholesale, referred to as production-related B2B, is the link between manufacturers or producers and customers as well as manufacturing, skilled trades and the construction industry. That makes it an early indicator of economic development. Wholesalers assessed both their current business situation and their expectations as significantly better than in the previous month: The indicator for expectations rose to minus 20 points, up from minus 41 points; the indicator for the business situation rose to minus 14 points, up from minus 25 points.
The business climate for the wholesale of consumer goods rose to minus 13 points, up from minus 24 points in April. Wholesalers are somewhat less pessimistic about their current situation (minus 14 points) than in the previous month (minus 21 points). Business expectations rose significantly to minus 11 points, up from minus 27 points in April.
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ifo Konjunkturperspektiven is a monthly German-language online publication that presents the latest results from ifo’s business surveys in the form of graphics and tables.
ifo Konjunkturperspektiven 05/2025
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