Greek economic sentiment index fell sharply in July
IOBE said the July reading was the lowest since October 2012 and reflected a severe deterioration of business expectations in all sectors and a new, significant, decline in consumer confidence. The report said this development was an expected result of adverse and extremely difficult economic conditions that followed a July referendum, the imposition of capital controls on the banking system and a widening political uncertainty in the country. The real effect of capital controls -an unprecedented fact in modern Greek history- cannot be fully assessed today since it was still in progress, IOBE said, adding that it would further burden an already shrinking economic activity leading to a deepening of an economic recession and of the crisis in general.
More analytically, business expectations in the manufacturing sector worsened markedly, with expectations over new orders and demand falling.
In the services sector, negative expectations over current and short-term demand worsened further, while expectations over the current situation of enterprises deteriorated significantly.
In the retail sector, expectations over current sales fell, along with forecasts over short-term developments, while expectations over inventories improved slightly.
In the construction sector, expectations over scheduled works deteriorated along with expectations over employment in the sector.
Finally, expectations over household finances, public finances and unemployment in the next 12 months, along with saving intentions, all deteriorated.
