The Business Expectations Index for Services recorded a slight decline in May, standing at 110.6 points, down from 112.8 points in April, according to the latest “Economic Climate Survey” by the Foundation for Economic and Industrial Research (IOBE). Among the index’s individual components, positive assessments of the current business situation remained unchanged, as did positive assessments of current demand, while forecasts for its short-term development edged slightly downward.
More specifically, the index of assessments regarding the current business situation remains at the same level as the previous month, at +32 points, with the index of assessments regarding current demand standing at +27 points, as in the previous period.
Forecasts for demand in the next quarter are also trending downward at +27 (from +36) points, with employment forecasts showing a mild decline to +21 (from +29) points. Regarding prices, the balance stands at mildly inflationary levels, at +24 points.
When asked about the degree of uncertainty in the economic environment, 52% believe that future growth is difficult or relatively difficult to predict, a significant increase from 47% last month.
At the level of key sectors, trends are mixed.
Business Expectations Index in Services
In more detail:
The business expectations index for hotels, restaurants, and travel agencies rose sharply to 125.2 (from 104.3) points.
The marginally negative assessments of the current business situation eased and turned positive at +18 points (from -1 point), while negative assessments of current demand (+7 from -12 points), with forecasts for short-term demand trends rising sharply to +63 points from +36 points the previous month.
Positive employment forecasts have strengthened further, standing at +47 (from +53) points, while the price index remains at strongly inflationary levels (+53 points).
The expectations index for non-bank financial institutions (excluding banks) is trending marginally downward, at 147.1 (from 147.8) points, slightly lower than the previous year’s level (154.9 points). Assessments of the current business situation stand at +60 points, down from +62 points last month, while those regarding current demand edged down slightly to +60 (from +65) points.
At the same time, forecasts for the short-term trend in demand strengthened slightly, rising to +24 (from +19) points, with employment forecasts surging to +60 points, from +27 points in the previous period. Regarding price expectations, the relevant index reached strongly inflationary levels at +60 points, up from +54 points the previous month.
The business expectations index for various business activities edged down slightly to 105.8 (from 112.5) points, a significantly lower level compared to the corresponding figure from last year (122.2 points).
Among the key indicators, the balance of assessments regarding the current state of businesses has fallen sharply compared to the previous month (+19 from +31 points), with positive assessments of demand falling sharply to +21 points from +31 points in April.
At the same time, positive forecasts for demand trends have weakened slightly to +33 (from +36) points, with employment forecasts easing to +33 points. On the other hand, inflationary pressure has eased significantly, and the related balance has returned to seasonal norms at +2 points, down from +31 points the previous month.
The business expectations index for IT and software development shows a slight improvement, standing at 105.0 (up from 100.7) points, a higher level compared to last year (92.9 points). Assessments of the current business situation strengthened significantly to +35 points, while, conversely, assessments of current demand are trending downward and stand at +19 (from +25) points.
Forecasts for the short-term trend in demand rose sharply to +27 points (from +15 points in the previous survey), while employment forecasts remained unchanged at +15 points. On the other hand, prices settled at mildly inflationary levels, at +27 points from +25 points the previous month.
Business expectations in land transport declined, with the relevant index standing at 85.4 (from 100.2) points. Positive assessments of the current situation weakened significantly, standing at +5 points, while assessments of current demand declined (the relevant balance fell from +19 to +7 points).
Forecasts for the short-term trend in demand show a significant decline, standing at -9 points from +15 points in the previous period, with pessimistic forecasts for sector employment easing to -10 points from -34 points in April. The price balance stands at relatively mild inflationary levels, at +19 points.
Business Expectations Index for Services
