The Greek Economic Sentiment Indicator in May 2011 remained at previous month’s levels, at 74 points.
According to the Institute for Economic and Industrial Research, the sentiment in individual sectors of the Greek economy is mixed: the industrial indicator has not changed, while the reduction in services was marginal. Retail trade has been largely hit, while the index of construction sector reported a rise, albeit from a very low level.
The consumer confidence indicator is stabilized, although it still reflects broadly intense frustration. Although the economic sentiment indicator moves above the corresponding levels last year, it has deteriorated over the first months of the year, indicating a gradual weakening of expectations. Business and consumers’ expectations are hardly stabilized in an overall uncertain and discontent environment, as fiscal adjustment and imposed measure have become even more demanding. Specifically:
-Industry: the production estimates have not changed, while negative estimates for the current level of demand and orders have mitigated.
-Services: negative estimates for the current level of work reported a sharp drop, while there has been a mild rise in estimates for the current course of demand and the outlook for short-term development.
-Retail trade estimates reported a sharp drop for current and next-quarter sales, while estimates for stocks suggest further rise.
-There has been a slight decline in construction estimates for the business work program, while estimates for employment record a sharp improve, following a record low in April.
-Regarding consumer confidence, forecasts of financial situation for both households and the country have been strengthened, while the intention of saving has weakened. The extremely negative forecasts of unemployment in the next 12-month period move marginally upwards for a second consecutive month.
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