Business Climate in German Retail Drops Considerably
The ifo Business Climate in German retail noticeably deteriorated in July, according to the latest ifo Institute surveys. The indicator fell to -25.4 points, down from -19.5 in June. Retailers are significantly more guarded about their current business situation. Their expectations for the coming months have clouded over further. “That makes a significant upturn in retail business in the second half of the year less likely,” says ifo expert Patrick Höppner.
Retailers of bicycles, electrical goods, and electronic household appliances, and drugstores report unfavorable business development. Food retailers and car sellers were also less satisfied. Sellers of bicycles, clothing, furniture, and furnishings assess their business situation as particularly tense.
For the second quarter of 2024, 54.1% of retailers reported insufficient demand. 46.2% had to contend with less foot traffic. The shortage of skilled workers was felt by 32.1%. “There is a lack of skilled workers, even though retailers are currently planning to cut their overall staffing needs,” says Höppner. 6.1% of retailers reported financing difficulties.
Source: ifo Institute
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