No change in economic sentiment
Greece’s Economic Sentiment Index remained unchanged in June at 89.7 points, the Foundation for Economic and Industrial Research (IOBE) announced yesterday. Although its reading was the same as in May, it is still below the level it was at a year ago – 91.2 points.
IOBE attributes this stability in the negative level of 89.7 points (100 points is the watershed between optimism and pessimism) to two opposing trends: the improvement in expectations in industry and the deterioration in retail commerce and services canceled each other out, while there is stability in the construction sector.
Consumer confidence strengthened for a second month in succession, although it continues to languish at very low levels. The accumulated pessimism of previous months is growing less acute at a very slow rate.
According to IOBE, the completion of the first bailout review has had neither a positive nor a negative impact on expectations, as by and large the economy had already factored in its positive outcome before. However, the next few months are seen as particularly crucial, as the course of tourism will have a significant impact on economic activity this quarter, while income tax payments are starting too.