The wholesale trade Raw materials, intermediate products, machinery and equipment has been temporarily recovered from the tariff shock, according to an IFO survey in Germany.
In May, the business climate in the wholesale sector in Germany increased to -17 points, from -33 points in April. “The climate between wholesalers was significantly less pessimistic again in May. However, given the unpredictable US tariff policy, it would be too early to say everything, “says IFO expert Ulrike Mandalka.
This particular part of the wholesale trade, known as the production connection trade, is the link between manufacturers or producers and buyers, as well as the processing industries, specialized trade and construction. It is therefore an early indicator of economic growth.
Wholesalers evaluated both their current business status and their expectations significantly better than last month: the expectations raised to -20 points, from -41 points. The business status index increased to -14 points, from -25 points.
In wholesale consumer goods, the business climate increased to -13 points from -24 points in April. Wholesalers evaluate their current condition a little less pessimistic (minus 14 points) than last month (minus 21 points). Business expectations have also increased significantly to -11 points, from -27 points in April.