consumer confidence -- rose to 75.6 from 73.3 points in December. "There is an emerging picture of stabilisation in the economy, with the economic sentiment index steadying at these low levels and not worsening," IOBE said. "The scale of the economic downturn is expected to ease in 2011, particularly if there is a medium-term solution to the debt crisis at a European level." Greece's economy, about 2.5 percent of the euro zone, is going through its deepest recession since 1974 and is expected to contract by 3 percent this year as a result of belt-tightening to secure continued euro zone and IMF emergency funding. Economic activity slumped 4.2 percent last year and Athens was forced to seek a 110 billion euro bailout from the European Union and IMF last May. Although consumer confidence recovered slightly last month, with the consumer sub-index reading rising to -72 from a historic low of -75 in December, Greek households remained pessimistic due to economic uncertainty and rising unemployment, IOBE noted. "Greek consumers remain the most pessimistic in Europe for the eleventh straight month, followed by Romanians and the Portuguese," IOBE said. However, in the retail sector, which has been hit by reduced household incomes, higher taxes and consumer worries over rising unemployment, there was a slight improvement in the outlook for sales in the coming months. Greece's jobless rate hit a record high 13.5 percent in October, the latest available data, and is seen rising to 14.5 percent based on official forecasts. The uptick in Greece's overall economic sentiment compares with a steady euro zone reading. The 17-nation bloc's economic sentiment index was unchanged at 106.5 points after seven straight months of recovery, data showed late last month.
source: Reuters
