Greek Economic Sentiment Index Down in July

The Greek economic sentiment index recorded its lowest figure for the past five months in July at 106.8 points from 110.5 points in June, according to the Foundation for Economic & Industrial Research (IOBE), a private, non-profit, public-benefit research organization.

The fall in the number is primarily attributed to the sectors of Industry, Construction, and Services, while the consumer confidence index also weakens, according to IOBE.

While summer generally creates a sense of optimism and positivity in various sectors, it seems that expectations are “correcting” the upward trend of recent months, as overly positive developments forecast did not come to fruition. Based on the data, caution appears to be rooted in domestic issues and the volatile external environment.

Rising volatility on the international scene with intensifying geopolitical tensions seems to be pressuring at least the outward-looking part of businesses.

Domestically, persistently high prices continue to worry households, as 56% expect further price hikes at the same or faster rate, and 61% state that they are “barely making ends meet.”

A larger percentage of Greek households compared to the previous month are drawing increasingly from their savings to get by.

In the Industry sector, the negative balance of estimates for orders and demand increased significantly, while estimates for inventories remained unchanged. In addition, positive production forecasts for the coming months weakened. The Business Expectations Index in Industry weakened sharply in July, to 101.4 from 108.3 points in June.

In Retail Trade, estimates for current sales are slightly reinforced, with inventory levels decreasing and short-term sales forecasts weakening marginally. The business expectations index in Retail Trade increased in July, reaching 107.3 points from 104.7 points in June. This improvement concerns almost all major sectors where expectations remain optimistic.

Source: tovima.com