At 108.1 units the economic climate index was formed in May from 108.7, marking a slight decline.

According to an IOBE economic situation survey, this development is a result of gentle retreat of expectations in the main sectors, with the exception of constructions where there is a strong improvement.

The index but it is kept high by the very important strengthening of consumer confidence which reaches its highest point in the last 21 months and more than compensates for the deterioration in business expectations.

More generally, the climate index continues to move at high levels since the beginning of the year, according to IOBE. On the contrary, relevant indicators in EU and Eurozone they decline significantly in May. “It should be noted that almost all of the household survey and a large part of the business survey was completed before the election. Therefore, the survey is more reflective of the climate in the preceding election period. In any case, the improvement in household expectations is decisive for the course of the index this month.

In the next period, the climate is expected to depend on the new pre-election period and in particular on how the result of the second election will shape the economic policy and the new framework for households and businesses” is noted in the IOBE survey. In more detail:

  • in manufacturing, the negative balance of orders and demand estimates strengthened markedly, inventory estimates climbed, and positive forecasts for output in the coming months improved slightly.
  • in constructions, the negative forecasts for production fell noticeably, while on the contrary the strongly positive forecasts for employment weakened marginally.
  • in retail trade, estimates for current sales were held at the same levels, with the level of inventories decelerating slightly, while forecasts for the short-term development of sales are significantly reduced.
  • in services, the positive estimates for the current state of business strengthened significantly, those for demand improved more modestly, while, on the contrary, forecasts for the short-term evolution of demand weakened significantly.
  • in consumer confidence, households’ negative forecasts for the country’s economic situation fell significantly, as did the corresponding ones for their own economic situation. At the same time, forecasts for major markets improved significantly and the intention to save increased slightly.