IOBE: Decline in Business Expectations in the Industry in May

In May, the business expectations index decreased to 110.8 points from 113.1 points a month earlier but remained higher compared to a year ago (109.2 points), according to the IOBE’s industrial trends bulletin. As IOBE data shows, international disruptions and uncertainties that have persisted for an extended period in the global and European economy have not yet had significant impacts. Overall, the impact of the recovery fund remains crucial for the economy, with its final stages affecting economic growth and qualitative characteristics. In April, industrial production in Greece fell by 4.3% compared to the same period last year, against a marginal increase of 0.6% in the EU27. All industrial sectors recorded declining trends in April. Specifically, there was a decrease in Manufacturing (-1.1%), Mining-Quarrying (-4.0%), and a more pronounced drop in Electricity (-19.6%). However, increases were noted in key sectors such as Basic Metals (11.6%), Food (4.6%), and Pharmaceuticals (1.9%). The factory capacity utilization rate declined to 79.1% in April (from 74.7% in January), with secured production extending to 7.2 months from 4.9 months in January. It is noted that employment in Industry decreased by 3.3% in Q1 2025, reaching 418.2 thousand people compared to the corresponding quarter of 2024. The IOBE bulletin reports strengthened employment across the entire economy (+1.0%, y-o-y), with employed individuals totaling 4,216.8 thousand in Q1 2025 (+43.4 thousand compared to a year ago). The labor cost index in manufacturing stood at 115 units in Q4 2024, marking a rise of 6.2% compared to a year earlier.