Greek Consumer Confidence Weaker in June, Says IOBE

The economic climate in Greece showed signs of decline in June, down to 102.5 points from 104.2 in May and 103.6 points in April, according to the Foundation for Economic & Industrial Research (IOBE).

In its monthly bulletin, IOBE analysts attribute the fall – the first in five months – to deteriorating  business expectations in retail trade and construction, and to a drop in consumer confidence.

According to the IOBE, performance in retail trade was impacted by a decline in household consumption due to pressures on disposable income by additional taxation in 2018.

Expectations in construction, meanwhile, were impacted by new property values which halted private works.

IOBE analysts note that the upcoming three months will have particular significance due to Greece’s exit from its bailout program in August, and to the positive forecasts for the tourism sector. 

In relevant news, the manufacturing sector in the eurozone also showed signs of deceleration for the sixth consecutive month in June, amid growing concerns over trade barriers and the impact on economic activity.

At the same time, unemployment in member states also fell in May, with the jobless rate down to 8.4 percent marking a nine-year low down from 8.5 percent a month before, Eurostat said on Monday.

Greece recorded the highest unemployment rate at 20.1 percent in March (the latest available figure) among the 19 eurozone countries while Germany marked the lowest jobless rate in May at 3.4 percent, according to Eurostat.