The economic climate improved in May, with the relative index standing at 111 points from 108.8 points in April.

According to its economic climate survey IOVE, the improvement comes from the business sectors, while the consumer confidence index declines. At the sectoral level, there is a significant improvement mainly in construction and retail trade and a milder one in industry, while there is a deterioration in services, with the exception of the tourism sector where expectations are very optimistic.

In the same research, it is noted that the data and other indications for incoming tourism so far are particularly positive, a development that is expected to contribute with optimistic prospects not only to the narrowest tourism sectors but also to those associated with them more broadly in the economy. The slight slowdown in the growth rates of the economy and the “tightness” faced by a large part of households for consumer goods and housing costs, amid a volatile European environment and with open conflicts in Ukraine and the Middle East, has not led to a worsening of the economic climate, which is generally positive especially in terms of business expectations. The results of the European elections could possibly affect the economic climate, especially if, as a whole, at the European level, it becomes apparent that it is difficult to deal with the challenges that are accumulating for the European economy in a coordinated manner and the questions about its medium-term prospects intensify.

In more detail:

– in the industry, the negative balance of orders and demand estimates eased slightly, inventory estimates weakened slightly while positive forecasts for production in the coming months eased.

– in constructionthe negative forecasts for business work programs were significantly reduced, while at the same time the positive forecasts for employment strengthened slightly.

– in retail tradeestimates for current sales are being boosted significantly, with inventories leveling off slightly and forecasts for near-term sales moving up slightly.

– in services, positive estimates for the current state of business improved slightly, while estimates for current demand are marginally strengthened with forecasts for short-term demand developments weakening significantly.

– in consumer confidence, households’ negative forecasts for the country’s economic situation strengthened, while the corresponding ones for their own economic situation remained stable. On the contrary, forecasts for major markets improved slightly while the intention to save increased significantly.