ECONOMY

Contrasting trends in sentiment index

Consumer confidence climbed in October, but the overall economic sentiment index compiled by the Foundation for Economic and Industrial Research (IOBE) posted a two-point decline compared with September.

The survey data published on Monday showed that the climate in the service sector and retail commerce may have improved, but the deterioration of economic expectations in industry and construction weighed heavily on the index.

IOBE notes that there are two contrasting trends in the estimates of entrepreneurs and consumers that change from month to month: Against progress on the fiscal front, with expectations for a primary surplus, and the major growth in stock prices, unemployment continues to rise and cash flow is particularly slow, while the tax burden is set to increase in the next two months for both households and enterprises alike.