Rebound of economic sentiment

Rebound of economic sentiment

Greece’s economic sentiment index rose from 103.5 in December to 104.9 points in January, its highest reading in the last 10 months, the Foundation for Economic and Industrial Research (IOBE) said on Wednesday. IOBE attributes this development to an improvement of expectations in the industrial sector and to a lesser extent in construction and retail commerce, while consumer confidence improved.

Inflationary pressures “are gradually de-escalating in comparison with last year, as energy prices did not create as much of a problem as initially feared, thus reducing pessimism. However, despite this slowdown, inflation remains at very high levels, especially in crucial categories such as food, and pressures continued on households and the market.”

IOBE said uncertainties will remain as long as the war in Ukraine continues, accumulating imbalances in the European economy. Additionally, the pre-election period could improve expectations over the course of the economy and the future position of households and enterprises.

Expectations in manufacturing showed a slight change in new orders and demand, which positive forecasts over production strengthened significantly. In the construction sector, negative expectations over production rose moderately. 

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