Economic sentiment posts only minor improvement

Economic sentiment posts only minor improvement

Business and consumer expectations have not improved as much as anticipated following the conclusion of the second bailout review, according to a monthly survey by the Foundation for Economic and Industrial Research (IOBE), whose results were released on Monday.

In its report with the June results, IOBE states that a further clarification of the direction of the Greek economy can be expected in the fall, provided there is progress on two crucial aspects of the bailout program: the reduction of uncertainty over the economy’s medium-term financing, and the improvement of conditions for attracting investments and job creation.

The economic sentiment index rose to 94 points last month, from 93.2 points in May and 90.2 points in June 2016. The business expectations index in industry posted a four-point rise from 88 points in May to 92 in June, thanks to the improvement in forecasts on output for the next few months, as well as to estimates regarding orders and demand. The line between pessimism and optimism stands at 100 points.

Manufacturing did turn optimistic last month as the Purchasing Managers Index (PMI) compiled by Markit registered a 50.5-point reading, clearing the 50-point barrier that separates contraction from growth in the sector.

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