Industrial Confidence Indicator slightly lower in November, IOBE says

The Industrial Confidence Indicator was slightly lower in November 2018, at 97.9 points (from 98.9 points in October and 98.7 in November 2017), according to figures released by the Foundation for Economic and Industrial Research (IOBE/FEIR) on Monday.

According to an IOBE survey, continued uncertainties in the international environment are impacting export-oriented enterprises in Greek industry.

An important step was made at the G20 Summit following the truce agreed by US and Chinese governments regarding their trade relations and the suspension of the imposition of new additional tariffs in the course of negotiations to reach an agreement by January.

However, the US-China trade war has not yet ended. If no agreement with China on specific issues concerning their bilateral trade relations is reached within 90 days, trade tariffs will rise to 25 pct. Moreover, the eurozone economy, which is the main destination for Greek exports of products, recorded a significant slowdown in its growth in the third quarter of this year, at 1.6 pct, from 2.2 pct in the previous quarter and 2.8 pct in the corresponding quarter of 2017.

Exports continue to dynamically support domestic manufacturing, as those exports of industrial products are still moving upwards. Specifically, exports of industrial products increased by 12.5 pct during the period from January to September 2018 compared to the corresponding period of 2017, slightly less than total exports of products (16.8 pct).

Imports of industrial products have also increased in the period January – August 2018, but less than exports of industrial products in the same period (4 pct), while the trade deficit in industrial products has decreased from 12.554 million to 12.290 million euros, ie -2.1 pct.

The deficit for total exports, by contrast, increased by 0.9 pct in the period January-September 2018 compared with the corresponding period of 2017.