A mild deterioration of the economic climate was recorded in October, due to a decline in industry, according to a survey by the Institute for Economic and Industrial Research (IOBE).
In the same month, an improvement in consumer confidence was registered.
The index of business expectations in the industry fell in October to 103.5 points (from 110.6 points a month before). However, it remained at a higher level than last year’s corresponding point (96.5 points).
Geopolitical turmoil
According to the IOBE survey, geopolitical turmoil appears to be affecting the outward-facing segment of domestic industry and causing uncertainties, despite the generally positive performance of product exports so far.
The negative balance for orders and current demand is more pronounced with a slight increase in the balance for inventories. Also, there is a decline in the index for consumer goods, mainly due to estimates for orders, and a rise for capital goods due to upcoming production.
On the other hand, according to the IOBE survey, the projects of the Recovery Fund continue to have a multiplier effect on the economy, while inflation persists at relatively high levels, with developments in the international environment affecting domestic expectations as well.
The survey showed a 2.4% rise in industrial production in September compared to a year ago in Greece, and a 2.4% decline in the EU-27. There are also mixed trends in industry sectors in September. In particular, an increase in Manufacturing (5.2%) and Mines-Quarries (9.5%), but a decline in Electricity (-8.9%). In sectors of high importance for the Greek economy, there was an increase in basic metals (14.1%) and food (8.5%), but a decline in pharmaceutical products (-10.8%).
