Foundation for Economic and Industrial Research: Greek economic sentiment index down in October

The Greek economic sentiment index eased to 98.3 points in October, from 100.6 in September, but remained above the 94.3 point level recorded in October last year, the Foundation for Economic and Industrial Research (IOBE) said on Wednesday.

In its monthly report, IOBE said business expectations deteriorated in almost all sectors of the economy, with the exception of retail commerce, and noted that this correction trend was rather expected after a strong recovery course throughout 2017. IOBE said that usually after a traditionally strong third quarter – which includes the tourist season – business expectations were more moderate, while sentiment was undermined because of the high tax burden on households and enterprises as we approached the end of the year.

More specifically, IOBE said that business expectations in the industrial sector fell over production estimates, along with estimates over new orders and demand. In the construction sector, estimates over the current work programme deteriorated, while estimates over employment remained unchanged. In the retail commerce, estimates over current sales improved, along with short-term sales, while estimates over inventories remained stable. In the services sector, optimistic estimates over the current condition of enterprises weakened in October, along with estimates over current demand, but estimates over short-term demand improved.

Consumer confidence showed a slight improvement in estimates over unemployment and a recovery in estimates over public finances. On the other hand, estimates over saving intentions deteriorated. The consumer confidence index was at -54 points in October, from -53.7 points in September, remaining at its highest level since July 2015, but at the bottom among EU member-states.