According to current surveys by the Ifo Institute, the mood among German retail companies has become worse. The index fell from -23.1 to -25.6 in September. Ifo expert Patrick Höppner classifies: “Consumers are uncertain about the economic policy environment. This means that no dynamic development in private consumer spending can be expected for the rest of 2024.” In addition to car dealerships and furniture retailers, fashion retailers have also become more pessimistic. Bicycle and food retailers, on the other hand, rate their situation more positively. Overall, retailers expect prices to rise less and are more cautious about hiring new staff, says Höppner: “In a predominantly difficult business environment, retailers see fewer and fewer opportunities for price increases. Employment will also fall rather than rise in the short term.”
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