The economic sentiment index plunged to 98.3 points in October, from 104.9 in September, as the end of the tourism season (meaning lower employment and income), combined with the high inflation generated pessimism in both businesses and households.
Signs from the purchasing managers’ index (PMI) in manufacturing are far from optimistic, as it fell significantly in October to 48.1 units from 49.7 in September, as a result of the decrease in industrial production and the drastic drop in new orders from the domestic and foreign markets.
“The European environment – the industry’s main trading partner – remains unstable and does not allow even export-minded companies to plan their production with a higher degree of freedom. In this uncertain environment, the increase in borrowing costs, due to the rise in interest rates, should also be taken into account, which is beginning to be recorded as a concern,” the Foundation for Economic and Industrial Research (IOBE), which compiles the economic climate index, pointed out.
Industry expectations posted a significant drop, to 95.9 points from 98.2 in September, with a negative balance for new orders. [kathimerini]