Economic sentiment weakens as Greek consumers grow more pessimistic

The index fell to 106.9 points from 107.6 in September, as expectations weakened in industry, services and retail trade. Construction, by contrast, improved.

Economic sentiment weakens as Greek consumers grow more pessimistic

This article is an AI translation of an original piece published in Greek. Read original

The economic sentiment index edged down in October to 106.9 points, from 107.6 points in September.

The decline reflected a relative deterioration in expectations in industry, services and retail trade, while construction moved higher.

Meanwhile, consumer confidence fell after four months of gains. In construction, there was a slight improvement, driven exclusively by public works.

Retail trade weakened slightly, owing to pessimistic assessments of current and future sales. Services recorded a modest decline, reflecting less optimistic assessments across all the components of the relevant index.

In industry, order books and current demand showed a downward trend. On the household side, Greek consumers voiced more pessimistic expectations for their personal finances and the country’s overall economic situation, while their appetite for major purchases weakened.

Ongoing geopolitical tensions, disruption in energy markets and persistent inflation are having a significant impact on expectations, with developments in these areas set to shape economic sentiment in the coming period.

In industry, the balance of assessments of order books and current demand fell significantly, while the positive balance of production expectations for the coming months weakened slightly, as did the level of inventories.

In construction, mildly positive expectations for firms’ work programmes strengthened significantly, while positive employment expectations improved more modestly.

In retail trade, positive assessments of current sales weakened slightly. Expectations for sales over the next quarter also edged down, while inventory levels eased accordingly.

In services, positive assessments of firms’ current situation weakened slightly, as did positive assessments of current demand and its short-term outlook.

In consumer confidence, households’ negative expectations for the country’s economic situation intensified, as did those for their own financial situation. Expectations for major purchases also weakened significantly, while the intention to save edged down.

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