Greek economic sentiment up in July, consumers worried

Greek economic sentiment improved slightly for the second straight month in July with better outlooks in industry and services offset by declining readings in the retail and construction sectors, a survey showed.
The Foundation for Economic and Industrial Research (IOBE) said on Wednesday its economic climate index — based on business expectations sub-indices covering industry, construction, retail trade, services and consumer confidence — rose to 66.3 from 63.8 points in June.
"In essence, business expectations have simply stabilised and the economic climate is not particularly changed as the feel feel of broader discontent about the course of economic activity remains strong," IOBE said.
Greece's economy, which makes up about 2.5% of the euro zone, is going through its deepest recession since 1974 and is seen contracting by 4% this year as a result of belt-tightening to secure euro zone and IMF emergency funding.
IOBE said despite a small uptick in consumer confidence, the reading remained very close to a historic low seen in the last months.
Reduced household incomes, higher taxes and uncertainty were taking a toll in the retail trade sector, weakening demand as consumers worry about rising unemployment.
"The percentage of households expecting unemployment will increase in the next 12 months stood at 92% from 95% in June," IOBE said.
Greece's jobless rate, exacerbated by the austerity-induced downturn, hit 11.7% in the first quarter — a 10-year high.
The slight improvement in Greece's overall economic sentiment contrasts with a strong rise in the euro zone's reading in July, which was buoyed by Germany.
The 16-nation bloc's economic sentiment benchmark rose to a 28-month high of 101.3 points, reflecting a recovery momentum that looks to be overcoming the sovereign debt crisis.