Greek Households Most Pessimistic in Europe: IOBE Report

Greek households remain by far the most pessimistic in Europe, surpassing the next most pessimistic nations by a considerable margin, according to a report by IOBE, the Foundation for Economic and Industrial Research.

Specifically, while the EU Consumer Confidence Index sits at -11.2 points, its highest level since February 2002, in Greece it remains far lower, at -50.3 points (up from -51.3). Estonia (-35.3) and Slovenia (-27.6) follow Greece in terms of consumer pessimism.

Consumer confidence in the country edged up slightly in October, despite an overall downturn in the economic climate reported by IOBE.

The consumer confidence index reflects household expectations for the economy based on questions across a scale from -100 (absolute pessimism) to +100 (maximum optimism).

The uptick in consumer mood is attributed in part to the strong tourist season, which officially ended in September but has been extended in some areas due to favorable weather. However, persistent inflation is eroding consumer confidence as citizens worry about high prices.

Despite slight improvements, the economic outlook remains bleak for Greeks.

Over six in ten (65%) of households said that their financial situation worsened over the past year (down slightly from 67% in September), while only 2% saw improvement.
Most households expect their finances to worsen over the next 12 months, though pessimism has dipped slightly to 60% from 63%, while only 5% anticipate minor improvement.
Consumer pessimism remains high regarding the national economy, with 69% expecting further deterioration, compared to 18% who anticipate stability.
Consumers are cautious about major purchases (e.g., appliances, furniture) over the next year, with 58% planning to cut expenses (up from 56%), and only 4% intending to increase spending.
Fewer Greek households expect to save money, with 83% indicating they won’t be able to, up from 81%.
The unemployment outlook index fell slightly in October, from +25.2 in September to +23.3. The percentage of households expecting a rise in unemployment dropped to 41% (from 45%), with 12% forecasting a slight decrease.

While the inflation index eased slightly to +40.7 in October (down from +43.1), most households remain wary of rising prices, with roughly 65% expecting prices to increase at the same or a faster pace, with 14% (up from 11%) predicting price stability.

Source: tovima.com