IOBE: Greek economic sentiment index unchanged in January

Greek economic sentiment index was unchanged at 95.1 points in January, the highest reading since April 2015, but lower compared with 2014 levels, the Foundation for Economic and Industrial Research (IOBE) said in a report released on Wednesday.

IOBE, in a monthly report, said that positive trends were recorded in the services, construction and retail commerce sectors, while unchanged conditions were recorded in the industrial sector. Consumer confidence remained in negative territory. IOBE said that Greek enterprises were adopting a wait-and-see attitude because of uncertainty related with the implementation of the economic programe and noted that a delay in improving liquidity conditions was affecting business expectations. Consumers expect additional pressure on the incomes of self-employed and farmers.

More analytically, business expectations in the industrial sector weakened over production in the coming months, expectations on inventories de-escalated, while negative estimates on orders and demand remained almost unchanged.
In the services sector, estimates over the current condition of enterprises improved slightly, along with estimates over short-term demand. In the retail commerce sector, estimates over production in the coming months improved slightly, while estimates over inventories and new orders/demand remained negative. In the construction sector, pessimistic estimates over work programes improved slightly, while estimates over employment remained unchanged.

The consumer confidence index deteriorate as Greek households were more pessimistic over the country’s finances in the next 12 months, unemployment trends and saving intentions -which fell to a record low level. Greek households’ estimates over their finances remained unchanged.