Greek economic sentiment index rose to 101 points in December

Greek economic sentiment index grew a further to 101 points in December from 98.4 in November, to its highest level since November 2014, the Foundation of Economic and Industrial Research (IOBE) said on Wednesday.

IOBE said that the economic sentiment index overall moved to higher levels in 2017 compared with 2016 (96.2 points from 91.8 points), a development which is consistent with a positive growth rate in the year. The report said that stability in the construction and services sectors and a decline in the retail commerce were counterbalanced by an increase in manufacturing and a rise in consumer confidence. This improvement reflected a relative lifting of uncertainty over economic trends and completion of a third review of the Greek programme. An improvement in the industrial sector is related with higher export performance, while an increase in consumer confidence reflected less pessimism over unemployment and its impact on households.

More specifically, business expectations in the industrial sector showed a strengthening of estimates over production in the next few months, along with estimates over orders and demand, with the balance of inventories falling.

In the construction sector, estimates over work programme deteriorated, but were counterbalanced by higher estimates over employment.

In the retail sector, estimates over current sales deteriorated, in contrast with estimates over short-term developments. In the services sector, positive estimates over current condition of enterprises weakened, along with estimates over current and short-term demand.

Consumer confidence showed a significant improvement of balance of estimates over unemployment and estimates over the country’s finances along with a slight improvement of estimates over households’ finances and saving outlook.