The economic climate index rose in May, reaching 107.5 points, up from 105.8 points in April. This improvement stems from stronger expectations in Industry and Construction, as well as in consumer confidence, with the remaining sectors showing a slight decline.
In Construction, the upward trend of recent months continues, while in Retail Trade there is a marginal deterioration, mainly due to pessimistic assessments of current sales. In Services, a slight weakening is recorded, due to pessimistic forecasts regarding the short-term evolution of demand. In Industry, expectations for production in the coming months show a significant improvement.
On the household side, Greek consumers, although they remain the most pessimistic in the Eurozone,, are expressing slightly more optimistic forecasts regarding their household finances compared to the previous month, as well as the country’s overall economic situation, while their intention to make major purchases and their intention to save have strengthened significantly.
Inflationary pressures persist and may be intensifying, as reflected in the trend of relevant Consumer Price Indexes, with the continuing uncertainty regarding the ceasefire in the Middle East being a critical factor.
Domestic economic activity is being mildly positively affected by inbound tourism, which at the beginning of the year led to an increase in travel receipts from abroad. A possible slowdown in the growth of the Greek economy may affect the economic climate for businesses and households in the coming period.
In more detail:
- In industry, the negative balance of assessments regarding orders and current demand weakened slightly, the positive balance of forecasts for production in the coming months strengthened slightly, while inventory levels remained unchanged.
- In Construction, the mildly positive forecasts for firms’ work schedules declined slightly, while positive forecasts for employment improved sharply.
- In Retail Trade, positive assessments of current sales declined slightly, with inventory levels remaining unchanged, as did forecasts for short-term sales trends.
- In Services, positive assessments of the current business situation remained unchanged, as did positive assessments of current demand, while forecasts for short-term developments edged down slightly.
- In Consumer Confidence, households’ negative forecasts regarding the country’s economic situation were limited, as were those regarding their own financial situation. At the same time, forecasts for major purchases improved significantly, while the intention to save increased slightly.
*See the IOBE bulletin on the right in the "Related Materials" column