In manufacturing the business climate index has risen noticeably. For the eighth consecutive time, firms assessed their business situation as less unfavourable. Business expectations have also risen. For their export business they anticipate a clear revival. Although the utilisation of machinery and equipment is still below average, the rate is higher than three months ago. The personnel plans of manufacturing firms are still geared to some staff reductions, according to the announcement on 26 January by Hans-Werner Sinn, President of the ifo Institute for Economic Research.

In retail the situation has been reported as nearly unchanged, with retailers somewhat more reserved regarding the six-month outlook than in December. As a result, the business climate in retail remains largely unchanged.

The business climate in wholesale has further improved. Survey participants are again more satisfied with their business situation. They are also less critical regarding business development for the six months to come.

In construction the business climate index has risen strongly. Although the surveyed contractors have given slightly more unfavourable assessments of their current business situation than in December, they are clearly less sceptical regarding business in the near future. Currently, however, many firms are complaining about weather-related constraints on construction activity.

The business climate in manufacturing improved significantly. Manufacturers’ current business situation is more favourable than in October. They perceive business prospects and export opportunities as more positive for the next six months.  Personnel planning is no longer primarily focussed on staff cuts.

The business climate in wholesale and retail also brightened, with participants of the survey being less sceptical about developments in the coming six months. Retailers view their current business situation somewhat more favourably, whereas wholesalers find that the situation in November has remained largely unchanged.

In construction the business climate index fell. Assessing their current situation as similar to that in October, firms are more reserved about future developments.

According to the Federal Statistics Authorities (Destatis), wholesale prices for solid fuels and mineral oil products were 14.8 percent up on October 2007. However, these commodities were 3.3 percent cheaper when compared to the previous month. The same applies to ore, iron, steel, non-ferrous metals and their semi-finished products: their wholesale prices increased by 12.3 percent against last year, but were 4.7 percent lower than in September 2008.

While price hikes of up to 8.1 percent were observed for wholesaling fruit, vegetables and potatoes when comparing October 2008 to October 2007, these products were traded at lower prices than in September 2008 (down 0.9 percent). The price level for wholesale coffee, tea, cacao and spices was up only 0.7 percent on last year’s level, but it decreased by 3.7 percent against the previous month. And for wholesale milk and milk products, eggs, cooking oil and nutritional fats, the decline in prices can be seen from the change rate against October 2007 (down 2.7 percent). Prices fell by 0.6 percent on the previous month. In October 2008, grain, seed and feed prices plunged 31.5 percent against last year. Compared to September 2008, prices dropped 11.0 percent, thus falling for the seventh consecutive time on the previous month.

Office equipment and furniture cost 9.1 percent less than in October 2007; prices were down 0.2 percent on the previous month.