Economic sentiment, PMI index drop in June

Economic sentiment, PMI index drop in June

The overtaxation of Greek households, the changes to properties’ taxable values that have led to a freeze in certain parts of the market, and the submission of income tax declarations that for most taxpayers led to additional tax dues have put an end to the rising course of the economic sentiment index, as well as prompting a fresh decline in consumer confidence.

The economic sentiment index that the Foundation for Economic and Industrial Research (IOBE) compiles showed a reading of 102.5 points in June, down from 104.2 points in May. IOBE notes that most of the survey was conducted before the Eurogroup decision on June 22 that eased Greece’s debt, and whose impact should be reflected in the following months.

Business expectations in industry showed a rise to 103.1 points from 101.7 points a month earlier, while in construction the expectations index dropped considerably, from 69.8 points to just 62. Retail commerce fell from 107.3 points to 100.1 points.

June also witnessed a slight decline in the Purchasing Managers Index compiled by IHS Markit. Its reading for last month was 53.5 points, against 54.2 points in May, but at least domestic and foreign orders have increased.

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