By Chrysostomos Tsoufis

While economic sentiment in Greece is at its highest point in 12 months, Greek consumer confidence is steadily declining, reflecting their pessimism about the future 17 days before the polls.

The IOBE economic climate index for April was a breather from 109 units mainly due to the improvement of expectations in retail trade and services. In 5 out of the last 6 months the index has been rising.

Life is against the grain for the consumer confidence index, which fell to -44.6 points, with Greek consumers consistently being the most pessimistic in Europe over the last year. Slovenes, Hungarians and Romanians they follow more than 10 units behind.

57% of households (up from 50%) in March expect product prices to continue to rise at the same or higher rate, while 17% expect price stability compared to 21% last month.

Two out of three Greek households state that their financial situation worsened slightly or noticeably in the last year. More than half, 56% (up from 51% in March) estimate that their financial situation will worsen more or less in the next 12 months. Almost the same percentage, 57%, has the same assessment of the country’s economic situation in general.

Unfortunately, 58% of households declare that in the next 12 months they will spend less, while the index of intention for important purchases (electrical appliances, furniture) deteriorated to -48 points. Only 4% estimate that they will be able to spend more. Characteristics :

-98% say they will not buy a car in the next 12 months
-95% declare that they will not buy or build a house
-12% declare that they will spend on renewing/improving their home.

More than 8 in 10 (85%) do not think they will be able to save in the next 12 months. It is characteristic that while the relative index in Greece is negative by 69 points, in the Eurozone it is positive by approximately 2.5 points. Only 13% in Greece consider saving possible or very likely.

It is characteristic that 61% state that they barely make ends meet, 13% that they draw from their deposits and almost 1/10 (9%) that they have been charged. On the contrary, about 2/10, 17%, state that they manage to… put something aside.

Things are a little better in terms of unemployment forecasts. 40% (from 36% in March) expect an increase and 22% a decrease in the next 12 months.