IOBE: Improvement of the economic climate in May

The economic climate improved in May, according to the results of the IOBE survey, with consumer confidence boosting and expectations improving in all sectors of the economy, except construction.

In particular, the economic climate index stood at 108.0 points in May, higher than the previous month (105.1 points) and at a level similar to a year ago (108.6 points), as announced by IOBE.

At European level, stabilization trends prevailed in the Eurozone, while there was a slight decline in the EU in general. Business expectations improved mainly in Industry and Retail and less in Services, while the Construction sector moved strongly in the opposite direction. While the rise in Services is mild, there is a strong improvement in expectations in the Hotel-Restaurant industry, with the relevant index at the highest level since 2012, being a first indication of the strong dynamics of the industry during the summer.

Rising inflationary pressures have not further dampened consumer confidence, which has recovered from a 4.5-year low in April, but remains well below last year.

The May recovery is thought to be due in part to the positive effects of energy crisis policy interventions, which also extend to sectors that are significantly affected by household consumption and energy costs. After all, the war in Ukraine continues, without its immediate end and with the escalation of sanctions against Russia. The importance of policy interventions, nationally and internationally, is gradually emerging, but which now need to have a medium-term horizon and strategic character, leading to the strengthening of production and the economy. The effects of the pandemic have a smaller impact on the economic climate than in the previous period, with the improvement of the relevant data continuing and the restrictive measures being further relaxed. These developments are expected to be reflected in tourism, the course of which will be crucial for expectations in the coming months.

In more detail:
➢ στη Industrythe mildly negative balance of estimates for orders and demand fell slightly, inventories for inventories eased significantly and positive forecasts for production in the coming months fell.

Or on Constructionsthe negative forecasts for production strengthened significantly, while at the same time the forecasts for employment declined significantly.

➢ στο Retailestimates for current sales improved significantly, with inventories escalating slightly, while forecasts for short-term sales strengthened significantly.

Or on Servicesthe positive assessments for the current situation of the enterprises improved slightly, those for the demand weakened significantly, while the forecasts for the short-term development of the demand strengthened significantly.

Or in Consumer Trust, the negative forecasts of households for the economic situation of the country decreased slightly, as well as the corresponding ones for their own financial situation within a year, which improved slightly. At the same time, the forecasts for major markets were significantly strengthened and the intention to save is significantly improved.