ATHENS – Greek economic sentiment indicator rose to 105.1 points in May, but remained below last year’s level (108.6 points), the Foundation for Economic and Industrial Research IOBE said on Wednesday.

The survey said that business expectations in Greece improved mainly in the industrial and retail commerce sectors and less in the services sector, while in the construction sector expectations dropped strongly. IOBE noted that strong improvement of expectations in the hospitality sector -the index rose to its highest level since 2012- was evidence of the dynamism of the sector during the summer period.

The survey said that increasing inflationary pressures did not further limit consumer confidence, which recovered after April’s decline and attributed the May rebound partly to the positive impact of government policy interventions offering support against the increasing energy cost. IOBE said the war in Ukraine was expected to end soon and noted that sanctions against Russia escalated. The survey stressed that the course of tourism will be crucial for business expectations in the coming months.

More specifically, business expectations in the industrial sector showed a slightly decrease in the negative balance of estimates over orders and demand, while positive estimates over production in the coming months eased. In the construction sector, negative estimates over production rose significantly, while estimates over employment fell markedly. In the retail sector, estimates over current sales improved significantly, inventories grew slightly and estimates over the short-term trend of sales rose markedly. In the services sector, positive estimates over the current condition of enterprises improved slightly, while estimates over short-term trends in demand rose significantly.

Greek households’ negative estimates over the country’s finances fell slightly, while estimates over major purchases rose markedly and saving intentions improved significantly.