The Economic Climate Index edged up slightly in June, reaching 108.3 points from 107.7 in May, according to the Institute of Economic and Industrial Research (IOBE)’s latest monthly business climate survey.
Service and Retail Sectors Drive Improvement
This modest improvement stems primarily from strengthened expectations in retail trade and services. In contrast, industry and construction showed mild declines. Consumer confidence remained unchanged from May — reflecting stable sentiment among Greek households.
Construction Halts Recent Gains
In construction, the upward trend observed over recent months has paused, largely due to a slowdown in private building activity. Meanwhile, retail trade recorded notable improvement, supported by mildly optimistic assessments of current and future sales.
Services Show Strongest Gains
The services sector posted the strongest improvement, with upbeat outlooks across all subcomponents of its index. By contrast, industrial producers reported a marked weakening in expectations for output over the coming months.
Household Sentiment Mixed
On the household side, Greek consumers expressed slightly more optimistic views about their personal financial situation and the broader national economy compared to May. However, intentions to make major purchases declined sharply — keeping overall consumer confidence flat.
Geopolitical Risks and Energy Markets
The ongoing Middle East crisis remains the main source of uncertainty for the European economy — particularly via inflationary pressures, prompting the European Central Bank (ECB) to raise interest rates. A temporary ceasefire and interim agreement between the U.S. and Iran have significantly eased pressure on energy markets.
Resuming smooth maritime shipping operations is now seen as critical to further easing global trade bottlenecks and inflationary pressures. Meanwhile, higher production costs in recent months have led to price increases that are weighing on household disposable income.
Tourism and Outlook Ahead
With tourism currently in its peak season, any downturn is currently assessed as minimal. Looking ahead, the economic climate over the coming months will hinge on two key factors: whether the Middle East crisis eases, and how domestic trends evolve — especially amid the upcoming pre-election period.