North German wholesale and foreign trade continues to perform well and prospects are good until the end of 2016. Dealers fared far better in the second quarter of 2016 with real sales increasing by 2.7 per cent over 0.3 per cent in the first quarter. The AGA indicator, which increased from 113.7 in Q1 to 116.9 at present, reflects the positive mood. Prospects until December 31, 2016 have disimproved only slightly with 25 per cent of companies expecting increased profits (29 per cent in Q1) and 15 per cent are forecasting lower profits (11 per cent in Q1).
Investments in EDP and telecommunications
The investment quota among firms in the north came to 3.53 per cent of sales compared to 3.33 per cent last year. Investments are particularly high in imports (4.71 per cent of sales), and lowest in exports at 2.78 per cent. The most frequent causes of investment were EDP and telecommunication followed by vehicle fleets and business equipment, according to 71 per cent of firms surveyed.
Brexit and TTIP among challenges
Speaking at the presentation of the latest survey of economic trends last week, Dr. Hans Fabian Kruse, President of the AGA business association, said: “Despite all the hurdles, 2016 is a good year for wholesale and foreign trade in north Germany. We have noted increased turnover and profits and firms are investing more in their operations especially in IT. Thus, this economic stage remains a successful model and an example of doing good business with solid trading. At the same time, we businesspeople must remain vigilant. The consequences of Brexit and the tense situation in reference to TTIP are among the challenges in the coming years.”
Sales increase of 2.2 per cent in Hamburg
All north German states fared well in Q2 of 2016. Lower Saxony achieved the highest nominal increase in turnover with 4.0 per cent. Wholesale and foreign trade in Bremen increased 2.9 per cent while Schleswig-Holstein achieved a 2.8 per cent increase. Turnover in Hamburg increased 2.2 per cent.
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