The economic climate in July was at its lowest level in the last five months, while consumer confidence also weakened, according to the Foundation for Economic & Industrial Research (IOBE) economic sentiment survey.

In particular, the economic sentiment index for the previous month stood at 106.8 points, up from 110.5 points in June. The decline comes from three business sectors: industry, construction,  and services, while the consumer confidence index is also weakening. 

As IOBE notes, although the summer period generally causes positive effects in various sectors, it seems that expectations are "correcting" the upward trend of recent months, as more optimistic developments may have been discounted. The concerns seem to be based as much on the external environment as on the domestic situation. 

Internationally, heightened uncertainties and intensifying geopolitical tensions seem to be putting pressure, at least on the outward-looking part of businesses. The issue of inflation continues to worry households, as 56% of them also expect prices to rise again at the same or faster pace, 61% say they are "just getting by," and a larger proportion than last month are drawing on their savings.