Munich-based Ifo Institute reports that Germany's retail business climate improved slightly in October, rising to minus 23.2 points from minus 23.8 in September. While companies assess their current situation somewhat better, overall sentiment remains subdued.
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"The business climate among retailers is stagnating at a low level," says Ifo expert Patrick Höppner. "Expectations, in particular, remain subdued. Many retailers anticipate that the business situation will remain very challenging until 2026."
The mood in furniture and DIY stores showed modest improvement, though over half of retailers report cautious consumer spending. In physical stores, 45.3% experienced lower customer traffic in Q3, while online traffic fared better, with only 23.7% reporting below-average visits.
Price expectations also rose slightly, with furniture stores planning price increases more frequently than the sector overall. Challenges persist, including a shortage of skilled workers affecting 25.4% of retailers and financing difficulties reported by 6.8%.
Overall, while the sector shows minor improvements, retailers remain wary of weak consumer demand and broader economic uncertainty, indicating a cautious outlook for the months ahead.
Source: www.moebelmarkt.de
