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Lower sales cause less investment by wholesalers

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  • Arno Städtler

Abstract

With a decline of sales by 2% in nominal and by 3.5% in real terms, the German wholesale trade registered a serious setback in 2001 over 2000. The negative trend, especially since last September, continued in the current year. From January to May 2002 sales declined by 4.6% in nominal and by 4% in real terms. This is due primarily to weak domestic demand whereas foreign demand was stronger. As economic activity improves in the second half of the year, wholesalers will also register more favourable sales than in the first two quarters. According to the Ifo Business Survey, business expectations already reveal waning pessimism; this will not suffice to bring about a positive average growth rate in 2002, however.

Suggested Citation

  • Arno Städtler, 2002. "Lower sales cause less investment by wholesalers," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 55(15), pages 45-47, August.
    • Handle: RePEc:ces:ifosdt:v:55:y:2002:i:15:p:45-47
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    File URL: https://www.ifo.de/DocDL/ifosd_2002_15_4.pdf
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    References listed on IDEAS

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    1. Arno Städtler, 2002. "Retail Trade: Declining Sales and Investments," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 55(14), pages 37-40, July.
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      JEL classification:

      • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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