German retail sentiment sees notable uptick in May: ifo

Germany’s retail sector saw a notable improvement in sentiment in May, with the ifo Business Climate Index rising to -18.6 points from -25.8 in April. Retailers reported a more favourable assessment of both their current business situation and future expectations.

However, clothing retailers continued to view their business climate more negatively than the retail sector overall. Price pressure in the industry has eased somewhat. In April, retailers raised prices less frequently than in the previous month, and they now appear more restrained in their plans for future price increases.

“Retailers are still dissatisfied with their economic situation, but their mood has improved considerably. For the time being, they assume that the economic risks posed by current US foreign trade policy will not weigh significantly on consumer sentiment,” ifo expert Patrick Höppner said in a release.

ALCHEMPro News Desk (HU)