Economic sentiment goes up, but PMI comes down

The Economic Sentiment Index compiled by the Foundation for Economic and Industrial Research (IOBE) climbed to a six-year high in June, reaching 103.7 points, a level unseen since April 2008.

At the same time consumer confidence continued to improve for a fourth consecutive month to reach the least negative level observed in the last four-and-a-half years, reflecting the drop in pessimistic expectations regarding the economic state of households and the country in general.

Despite the clear signs of recovery in confidence, the economy remains particularly vulnerable, as reflected in the Purchasing Managers Index (PMI), which last month fell to 49.7 points, below the 50-point watershed that separates growth from decline.

Employment in manufacturing also dropped, wiping out the rise recorded at the start of the second quarter.

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