Business
German retailers more pessimistic in holiday season, Ifo says
Global Banking & Finance Review®
Company
By Maria Martinez
BERLIN (Reuters) – The business climate index in Germany’s retail sector fell slightly in normally consumer spending-heavy December, as retailers assess their current situation as somewhat worse than in November, the Ifo Institute said on Friday.
Business expectations for the coming months also declined slightly, Ifo added.
This year was very challenging for the retail sector and the overall economic environment is likely to remain difficult in 2025, “even though many retailers are hoping for an improvement in consumer sentiment,” said Ifo expert Patrick Hoeppner.
Although the business climate in the consumer goods industry initially improved in the first half of 2024, things went downhill in the second half of the year, Ifo surveys showed.
“In addition to weakening demand, the shortage of skilled workers remained a pressing problem for many retailers in 2024,” said Hoeppner.
The outlook for 2025 is mixed. Rising disposable income could provide positive momentum, but economic policy uncertainty is continuing to weigh on both retailers and consumers, Ifo added.
(Reporting by Maria Martinez, Editing by Andrey Sychev)
The business climate index is a measure that reflects the overall economic conditions and sentiment among businesses in a specific sector, indicating their current situation and expectations for the future.
Consumer sentiment refers to the overall attitude of consumers towards the economy and their financial situation, which can influence their spending and saving behaviors.
Skilled workers are individuals who possess specialized knowledge or abilities in a particular field, often requiring training or education, and are crucial for businesses to operate effectively.
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