Greece's consumers remained the most pessimistic in the European Union in July, despite a modest improvement in sentiment. The consumer confidence index rose to - 47.8 from -52.8 in June, but still stood well below every other EU member state. Romania followed at -30.0 and Bulgaria at - 25.9, while the EU and eurozone averages were -15.1 and -15.9, respectively, underscoring the persistent gap between Greek households and their European peers.
The findings, based on the monthly Economic Sentiment Survey conducted by the Foundation for Economic and Industrial Research (IOBE), show that households continue to hold deeply negative views of both their own finances and the country's economic prospects. Two-thirds of respondents said their financial situation had deteriorated over the past year, while 59% expect it to worsen further over the next 12 months. Although these figures improved from June, only 3% of households anticipate any improvement in their financial position.
Expectations for the Greek economy remain even bleaker. More than seven in ten consumers expect the country's economic situation to deteriorate over the coming year, while fewer than one in five foresee stability. The corresponding index improved only marginally, to -56.1 from -59.1, remaining one of the weakest readings in the EU.
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Consumers also continue topostpone discretionary spending. Although intentions to make major purchases strengthened compared with June, more than half of respondents still expect to reduce spending on big-ticket items such as furniture and household appliances over the next year, while only 5% anticipate increasing such purchases.
Limited financial resilience of Greek households
The survey also highlights the limited financial resilience of Greek households. Some 84% consider it unlikely they will be able to save over the next 12 months, compared with positive savings expectations across both the EU and the eurozone. Meanwhile, 58% say they are "just getting by," and 13% report drawing on existing savings to cover current expenses.
Housing-related indicators remain particularly weak. Only 2.4% of households say they are likely to purchase or build a home over the next year, with Greece's housing intentions index remaining substantially weaker than the corresponding EU and eurozone measures. While plans for home renovations improved from the previous quarter, they also remain well below European levels.
Against this backdrop, there were some signs of improvement. The overall consumer confidence index recorded its strongest monthly gain in several months, driven by less negative expectations for household finances, stronger intentions to make major purchases and a modest increase in savings expectations. Inflation expectations also eased sharply, suggesting consumers anticipate slower price increases over the coming year.
