The business climate in retail has deteriorated due to the weak Christmas business in some cases.
The companies surveyed by the Munich Ifo Institute in December rated their current situation and their expectations for the coming half-year worse than in November. The business climate index for the industry fell from minus 8.8 to minus 12.1 points. “The Christmas business did not go as well as hoped for many retailers in the first weeks of Advent,” said Ifo expert Patrick Höppner on Thursday.
Ironically, retailers of toys and consumer electronics as well as electrical engineering and electronic devices see their business situation as worse in December than in November. It is mostly good at drugstores.
“Consumers’ continued reluctance is likely to give retailers a difficult start to 2024,” said Höppner. However, falling inflation and rising wages are likely to generate more demand as the year progresses. (dpa)