The Society of Senior Business Executives (EASE), in collaboration with ICAP CRIF, conducted a 3-monthly survey on a sample of 2,540 CEOs/general managers of the largest Greek companies. The results showed that the general economic sentiment index (EASE/ICAP CRIF-CEO General Index) declined for the third quarter of 2024 stood at 151 points. The survey was conducted between 17/09/2024 and 30/09/2024.
The new decrease in the index shows that CEOs are still concerned about the ongoing international tensions, which do not seem to be de-escalating at least in the short term, increasing uncertainty about future developments and their impact on the economy and businesses. An analysis of the results by size category shows a decline in the index for small, medium, and large enterprises, while the index rises for very large enterprises. The EASE-CEO Current Status Index showed a new decrease to 150 points compared to 155 points in the previous quarter, and the EASE-CEO Expectation Index decreased to 153 points compared to 163 points in the previous quarter.
In detail, the individual indicators record the following developments for Q3 2024:
The country's Current Economic Situation Index declined to 195 points compared to 207 in the previous quarter. The percentage of CEOs stating that the country's current economic situation has improved compared to 1 year ago decreased to 26% compared to 35% in the previous quarter. The percentage of CEOs who say the country's current economic situation has improved was 33% for very large firms. The index for predicting the country's economic situation one year later declined to 169 points from 178 points in the previous quarter. The percentage of CEOs who think the country's economic situation will worsen in the next year increased to 25% compared to 16% in the previous quarter. This figure rises to 33% for industrial firms.
The index of the current economic situation of the industry in which firms operate fell to 177 points from 180 in the previous quarter. The percentage of CEOs reporting that the current state of their industry is better than 1 year ago decreased to 33%, which is up to 48% for CEOs of service firms. The index of expectations for the financial condition of the business sector showed a new decline to 159 points from 172 in the previous quarter.
The percentage of CEOs who believe that in a year's time their operating industries will be in better financial condition than they are now decreased to 28% (down from 34% in the previous quarter), while this figure rose to 41% for CEOs of service businesses and 36% for CEOs of small and medium-sized businesses.
The current financial condition index of companies fell slightly to 125 points compared to 127 points in the previous quarter. The percentage of CEOs reporting that their companies' current financial condition has improved from a year ago remained stable from the previous quarter, rising to 65% for CEOs of service firms. In contrast, the index of CEOs' expectations for their company's financial condition in the coming year fell to 133 points from 148 points in the previous quarter. The percentage of CEOs expecting improvement in the coming year rose to 50% (up from 58% in the previous quarter), increasing to 61% for CEOs of service firms.
The current spending on fixed capital expenditures index fell slightly to 137, down from 140 in the previous quarter. The percentage of CEOs reporting that current capital expenditure of the businesses they manage is higher than a year earlier rose to 40%, while it increased to 57% for CEOs of industrial firms and 67% for CEOs of very large firms. The investment expectations index deteriorated to 141 points compared to 163 points in the previous quarter. The percentage of CEOs who say that investment spending in their companies will be higher in the coming year was 32%, up from 45% in the previous quarter. For CEOs of industrial companies, this figure rises to 43%, and for CEOs of very large companies, it rises to 59%.
The current employment index declined to 116, down from 119 in the previous quarter. The percentage of CEOs reporting that the number of employees at the firms they manage is higher than a year ago rose to 47% (up from 49% in the previous quarter), which is up to 78% for CEOs of very large firms. The employment expectations index, in contrast, rose to 162, up from 153 in the previous quarter. The share of CEOs who say employment at the companies they run will be up 1 year later was 52% (vs. 44% in the previous quarter), which is up to 65% for CEOs of service firms.
In addition to the standard inquiries made of CEOs every three months, the survey also requested an evaluation of the degree to which rising electricity costs have impacted firms' business operations.
Two in ten CEOs felt that the businesses they run had not been affected at all, four in ten were slightly affected, three in ten were moderately affected, while 15% of CEOs said that the businesses they run were very much to very much affected, doubling to 29% for CEOs of industrial companies. CEOs were further asked for their views on the impact of geopolitical tensions on business growth over the next 1-3 years. 63% of CEOs responded that the impact on the businesses they manage will be significant to very significant, rising to 86% for CEOs of industrial firms, while in contrast, 37% of CEOs say that businesses will be minimally to not at all affected.
