09/03/2007 14:54
An upbeat mood among retailers about short-term prospects in February was not enough to offset the negative expectations in industry, construction and services, according to the economic climate index (ECI) compiled by the Foundation for Economic and Industrial Research (IOBE).
Greece’s ECI in February moved in the opposite direction of respective indices elsewhere in Europe, falling to 105 points from 107.6 in January. Nevertheless, it was higher than in February of 2006.
According to IOBE, the ECI decline was the result of a deteriorated outlook for production in industry and construction, as well as weaker estimates of current demand in services.
In industry, production forecasts for the next three to four months were weaker – even while remaining positive – than in the previous month: One in nine respondents expected a decline, against one in 12 in January.
In construction, 47 percent of respondents said current business is lower than usual. Employment forecasts in the sector were slightly up but not enough to offset the dimmer outlook for the work schedule, IOBE said.
Retailers’ upbeat mood was the result of even more favorable estimates for current and short-term future sales. Two in three respondents think sales have been rising in the last three months – a trend expected to be maintained by 62 percent. The sales period is considered to have made a positive contribution.
In the services sector, there were weaker estimates of current demand, with only one in three seeing it higher, and marginally less positive expectations for business activity as a whole. Nevertheless, forecasts regarding demand and employment in the next three months remain positive.
Five in nine said business activity was facing no problems.
Consumer confidence
The Consumers Confidence Index in February was virtually unchanged in relation to the previous month. Consumers remained among the most pessimistic in the 27-member European Union, along with Cyprus, Hungary and Portugal. Nevertheless, the index was marginally higher than in February 2006.
Pessimistic forecasts regarding the economic situation of the country and households, as well as unemployment, were only slightly blunter than in January, while the propensity to save was unchanged.
Consumers’ expectations of their economic situation in the next 12 months improved slightly but remained on the whole unfavorable.
Greece’s ECI in February moved in the opposite direction of respective indices elsewhere in Europe, falling to 105 points from 107.6 in January. Nevertheless, it was higher than in February of 2006.
According to IOBE, the ECI decline was the result of a deteriorated outlook for production in industry and construction, as well as weaker estimates of current demand in services.
In industry, production forecasts for the next three to four months were weaker – even while remaining positive – than in the previous month: One in nine respondents expected a decline, against one in 12 in January.
In construction, 47 percent of respondents said current business is lower than usual. Employment forecasts in the sector were slightly up but not enough to offset the dimmer outlook for the work schedule, IOBE said.
Retailers’ upbeat mood was the result of even more favorable estimates for current and short-term future sales. Two in three respondents think sales have been rising in the last three months – a trend expected to be maintained by 62 percent. The sales period is considered to have made a positive contribution.
In the services sector, there were weaker estimates of current demand, with only one in three seeing it higher, and marginally less positive expectations for business activity as a whole. Nevertheless, forecasts regarding demand and employment in the next three months remain positive.
Five in nine said business activity was facing no problems.
Consumer confidence
The Consumers Confidence Index in February was virtually unchanged in relation to the previous month. Consumers remained among the most pessimistic in the 27-member European Union, along with Cyprus, Hungary and Portugal. Nevertheless, the index was marginally higher than in February 2006.
Pessimistic forecasts regarding the economic situation of the country and households, as well as unemployment, were only slightly blunter than in January, while the propensity to save was unchanged.
Consumers’ expectations of their economic situation in the next 12 months improved slightly but remained on the whole unfavorable.
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