The Economic Sentiment Index (ESI) remained steady across the EU and the Eurozone, according to the latest Economic Tendency Surveys conducted by Greece’s Foundation for Economic and Industrial Research (IOBE).
Developments in Greece
According to IOBE, the industrial sector rebounded in November (+1.3) following a lackluster showing in September and October. This upturn was ascribed to optimism across all three key components of the index: orders and demand, inventories, and expected production in the coming months.
In services, expectations declined (-0.9), reflecting deteriorating assessments of current demand, future demand forecasts, and evaluations of the current business situation.
The retail trade sector saw a notable boost (+2.3), thanks to optimistic assessments of current conditions and modest improvements in inventory levels, despite weakening expectations for future conditions.
In the construction sector, the index showed a marginal rise (+0.3) for the third consecutive month. This growth was supported by optimistic expectations about order levels, partially offset by more negative employment forecasts.
Consumer confidence, however, broke its upward trend (-1.1), reflecting growing pessimism about both the current and future financial situation of households and the general state of the country.
Improved expectations in the industrial and retail trade sectors contributed to the ESI stability, as they offset pessimistic outlooks in services and consumer confidence. Meanwhile, expectations in the construction sector remained nearly unchanged.
Across Europe’s six largest economies, the ESI improved significantly in France (+3.0), Spain (+2.1), and the Netherlands (+1.5), with a modest gain in Poland (+0.7). In contrast, Germany experienced a decline (-1.3), followed by a smaller drop in Italy (-0.3).
Industry: The industrial expectations index stood at -10.4 in the EU and -11.1 in the Eurozone. Forecasts for production in the next three months improved, while inventory levels eased slightly, and projections for orders and demand showed positive momentum in both regions.
