The economic climate index rose significantly in July, closing at 109.1 points, up from 106.1 points the previous month, the highest performance in the last 13 months.

According to an economic survey by the Foundation for Economic and Industrial Research (IOBE), this improvement stems from stronger expectations in industry and services, while in other sectors the picture is stabilising or deteriorating.

Specifically, current demand is improving in industry, while in construction there has been a slight correction in estimates for the work programme, which were, however, very positive. Services are maintaining their momentum, mainly due to the hotel and restaurant sector, with satisfaction from current and short-term demand. In contrast, retail trade is seeing a significant deterioration in expectations across all sectors, as is consumer confidence, which is at its lowest level in nine months.

Consumers’ forecasts for their household’s financial situation over the next 12 months are deteriorating, with 59% of households expecting a slight or significant deterioration in their financial situation. In any case, however, the assessment of businesses in various sectors of the economy has improved significantly and dominates the economic climate, despite the concerns that households continue to have, according to the survey.