Economic sentiment rises

Greece’s economic sentiment index climbed to a 15-month high in June, the Foundation for Economic and Industrial Research (IOBE) said on Thursday, mainly thanks to the lifting of most restrictions on travel and the resumption of most economic activities. However, there was also a drop in consumer confidence for the first time in three months.

The purchasing managers index (PMI) showed a marginal increase to 58.6 points last month from 58 points in May, mainly thanks to the increase in orders, while business expectations in industry eased in June to 105.3 points, from 110 points in May.

The consumer confidence index showed a mild decline to -25.6 points in June, from -22.2 points in May, but slightly higher than the -27.7 points recorded in June 2020. IOBE commented that after the strong rebound of consumer sentiment in the period from March to May, a small slide in June was quite anticipated.

IOBE identified the apparently strong new variant of the coronavirus and the lag in vaccinations across some age groups of the population as sources of uncertainty. It is also true that many of the adverse consequences of the pandemic have not yet been reflected in the economy thanks to the continuous support measures.

The foundation also made a recommendation to the government, saying, “As the transition to the post-pandemic era gradually becomes visible, it will be crucial for policy decisions to be made in time toward preparing for the day after in the economy.”