Greek economic sentiment index up to 104.9 points in January

Greek economic sentiment index rose to 104.9 points in January from 103.5 in December to its highest reading in the last 10 months, the Foundation for Economic and Industrial Research (IOBE) said on Wednesday.

IOBE attributed this development to an improvement of expectations in the industrial sector and to a lesser extent in constructions and retail commerce, while consumer confidence improved.

Inflationary pressures "are gradually de-escalating in comparison with last year, as energy prices did not create as big as a problem as initially feared, thus reducing pessimism. However, despite this slowdown, the inflation remains at very high levels, especially in crucial categories such as food, and pressures continued on households and the market."

IOBE stressed that uncertainties remained as long as the war in Ukraine continued accumulating imbalances on the European economy. Additionally, the pre-election period could improve  expectations over the course of the economy and the future position of households and enterprises.

More specifically, expectations in the manufacturing sector showed a slight change in new orders and demand, which positive forecasts over production in the next few months strengthened significantly. In the construction sector, negative expectations over production rose moderately, while positive forecasts over employment improved slightly.

In the retail commerce, expectations over current sales improved significantly, while expectations over short-term sales eased slightly. In the services sector, positive estimates over the current condition of enterprises eased markedly, along with those over demand. In consumer confidence, negative estimates over the country's finances fell markedly, along with estimates over households' finances.