IOBE: Economic climate down in November

The economic climate in Greece has deteriorated in November after 3 consecutive months of positive data, according to the Foundation for Economic & Industrial Research (IOBE) index. The economic climate index fell to 92.4 points in November, compared to 93.8 in October, with the downward trend attributed mainly to a drop in consumer confidence and secondarily to a negative outlook in the industrial sector. In contrast, there were positive signs in retail, services and construction, an expected correction, given the relative stabilisation in the Greek economy in the medium-term, leading consumers and businesses to a more positive outlook. However, Greek households are esepcially pessimistic about the next 12 months concerning the course of the Greek economy.

In more detail, the positive outlook for the industrial sector is expected to fade, while the estimates for reserves is mildly escalating. The negative outlook for orders and demand remain at the same level. Expectations in the business services sector remain unchanged, while demand is estimated to improve. In retail, the positive outlook on current sales is expected to rise, while the outlook for short-term growth remain unchanged, with the reserve index recording a negative turn. The negative outlook in employment in the construction industry is dampened. Finally, the consumer confidence index is showing signs of deterioration due to a drop in Greek household expectations on the course of the economy over the next year.