Economic Sentiment in German Retail Sector Shows Slight Improvement in May
According to the Ifo Institute in Munich, the business climate in the German retail sector has shown a notable increase in May. The institute reported that the indicator rose to -18.6 points, up from -25.8 points in April. Both the current situation and expectations of the retailers have brightened.
While the retailers remain dissatisfied with their economic situation, their mood has improved significantly, said Ifo expert Patrick Höppner. The retailers do not currently anticipate that the recent course of US trade policy will have a significant impact on consumer sentiment.
Retailers in the food and automobile sectors have a more positive assessment of their current business situation than the retail sector as a whole. In contrast, clothing, furniture and bicycle retailers have a more negative view of their business situation compared to the overall retail sector.
The price pressure in the retail sector has eased, with retailers increasing prices less frequently in April than in the previous month. For the coming months, they plan to be more restrained in their price increases, although Höppner noted that price increases are still likely, particularly for food and furniture in the coming months.