IOBE: Greek economic sentiment index up in December

Greek economic sentiment index rose to 109.5 points in December from 107 in November, to its highest level since November 2007, the Foundation for Economic and Industrial Research (IOBE) said in a report on Thursday.

IOBE, in its monthly report, said the new increase was the result of improving expectations in the constructions and services sectors, followed by an improvement in the industrial sector and a strengthening of consumer confidence in December. The retail commerce sector was the only one to move lower despite a further improvement of consumer confidence to a 19-year high. The report noted that a series of Greek economic indicators continued moving higher despite a worsening of the external environment and geopolitical tensions in the region.

More specifically, business expectations in the industrial sector showed a slight improvement on inventories and production trends in the coming months, in the construction sector, negative estimates on the work programme fell strongly along with negative estimates on employment. In the retail commerce, positive estimates over current sales rose moderately with inventories rising. In the services sector, positive estimates on the current condition of enterprises rose moderately along with estimates over demand (current and short-term).

In consumer confidence, Greek households’ estimates over their finances and the country’s finances deteriorated, while saving intentions rose in December.