ECONOMY

Economic sentiment at 19-year high, IOBE reports

economic-sentiment-at-19-year-high-iobe-reports

The Foundation for Economic and Industrial Research (IOBE) reported on Wednesday a considerable rise in its economic sentiment index in February to levels unseen in 19 years.

The index reading for last month reached 113.2 points against 109.5 points in January.

IOBE noted that business expectations are improving significantly in industry and mildly in services, while there is also a sizable increase in consumer confidence, which has reached its highest level since July 2000.

Despite the variations between sectors, there is optimism across the board about the course of demand in the near term, while there is a notable reduction in pessimism among households.

However, it will be crucial to see to what extent recent causes of intense uncertainty, such as geopolitical tensions, the migration crisis, the coronavirus epidemic and sluggish growth in the eurozone, will affect business and consumer sentiment over the course of the year, IOBE added.