IOBE: Greek economic sentiment index down in January

Greek economic sentiment index fell to 99.6 points in January, from 101.6 in December, reflecting a significant deterioration of business expectations in the services sector, the Foundation for Economic and Industrial Research (IOBE) said in a report released on Monday.

IOBE, in its monthly report, said economic sentiment improved in the industrial, construction and retail commerce sectors, while consumer confidence improved for one more month. IOBE noted that a mixture of different factors determined economic climate in the country as the country sought direction in the first months after exiting the memoranda, creating new financing terms for the economy, a pre-election dynamic and developments in the international environment. Business expectations are mixed among economic sectors, reflecting differences in external or domestic demand.

More specifically, business expectations in the industrial sector showed a slight deterioration of negative estimates over orders and demand, while the balance of estimates over short-term production improved and estimates over inventories remained unchanged. In the construction sector, estimates over the work programme improved, along with estimates over employment. In the retail commerce sector, positive estimates over current sales improved markedly, although short-term estimates weakened. In the services sector, estimates over current condition of enterprises weakened further along with estimates over current demand and short-term trends.

Consumer confidence improved further as Greek households were more optimistic over the country’s finances, with estimates over households’ finances and unemployment remaining unchanged. Saving intention weakened in January.