The decline in consumer demand, the deterioration in expectations about the future course of retail commerce and services, as well as the drop in consumer confidence resulted in a worsening in Greece?s economic climate last month, according to a survey conducted by the Foundation for Economic and Industrial Research (IOBE).
However, the deterioration was very small as it was moderated by the improved picture in expectations for the industrial and the construction sectors. Consequently the Economic Climate Index declined to 75.8 points in October from 76.1 points in September.
Economic activity is seen to have been negatively affected by the protracted negotiations between Athens and the representatives of its international creditors ? known as the trokia ? regarding fiscal adjustment measures and structural reforms.
At the same time favorable rhetoric from abroad concerning Greece bolstered business expectations and helped to stabilize the market?s mood, although that was not enough to reverse the downward trend that makes the Greeks the most pessimistic nation in the European Union, now at a historically low level.