The budget execution to September showed revenues beating monthly targets by 339 million euros for the third straight month in September with the year to date shortfall further narrowing to 710 million from its peak of 1.61 billion euros at the end of June, according to the preliminary data released by the Ministry of Finance (MoF) today.
Greek building activity (measured by the number of building permits) dropped 24.0 percent in July with the respective surface figure easing 8.6 percent, while volume remained flat year on year, according to the Hellenic Statistical Authority (ELSTAT).
Greece’s Consumer Price Index (CPI) remained on negative ground in September, easing by 1.1 percent compared to a 1.3-percent drop recorded in August. On a monthly basis, CPI rose by 2.6 percent, while the average rate of CPI change over the trailing twelve months turned negative at -0.1 percent for the first time.
Having suffered huge losses due to the PSI last year, completed a series of M&A that reshuffled the domestic banking landscape and successfully recapitalised in June, Greek banks remain at the forefront of domestic corporate developments. Their stock performance, with gains in excess of 50 percent over the past three months, has also triggered increased interest from the investment community.
The Ministry of Finance (MoF) tabled the 2014 draft budget to the Greek parliament on Monday with headline figures confirming recent press reports. As was broadly expected, 2014 will be another year of ambitious budget consolidation with a further cut in primary expenditure by 2.77 billion year on year (yoy) and a revenue increase of 2.55 billion yoy.
The Greek general government (gg) cash deficit to August fell by 60.7 percent to 3.87 billion with the gg cash primary surplus rising by 12.7 percent to 1.78 billion, according to the Ministry of Finance (MoF). State arrears to the private sector retreated 2.0 percent month on month (mom) and 25.8 percent (2.29 billion) since the beginning of the year.
Greek Manufacturing PMI eased to 47.5 in September from a 44-month high of 48.7 in August, the first drop in the headline index over the last six months, according to Markit. Nevertheless, it is still at its second-highest level in the past three and a half years, while posted its highest quarterly average since the fourth quarter of 2009.
Retail sales continued heading south for yet another month with the contraction rate accelerating to 14.2 percent in July from a revised 7.7 percent in June, according to Hellenic Statistical Authority (ELSTAT). A similar drop (14.0 percent) was also evident in retail volumes
Just as the Finance Ministry in Athens announced on Wednesday a final budget execution to August that blew away primary surplus targets by a margin of 5.36 billion, which is the equivalent of 2.9 percent of Greece's expected GDP, reports suggested that Yannis Stournaras agreed with the troika that the full year primary surplus would be in the region of 400 to 500 million, which is no more than 0.27 percent of GDP.
Credit contraction in the Greek market marginally decelerated to 3.9 percent year on year (yoy) in August from 4.0 percent in July with balances reaching 221.79 billion euros, according to the Bank of Greece (BoG).