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Greek July Economic Sentiment Rose on New Government

Greek economic sentiment improved in July after national elections in June led to the formation of a government under Prime Minister Antonis Samaras.

An index measuring short-term economic trends advanced to 76.1 from a seven-month low of 74.1 in June, the Athens-based Foundation for Economic & Industrial Research, known as IOBE, said in an e-mailed report today. Consumer confidence improved to minus 64.7 from minus 70.4, the foundation said.

Samaras formed a three-party coalition after the June 17 election on pledges to renegotiate the terms of a European Union and International Monetary Fund bailout package and keep Greece in the euro area. Inconclusive elections in May, in which parties that rejected the terms of the bailout gained support, had led to the second vote.

“The formation of a government had a positive effect, especially on consumer confidence, where there are post-election hopes for upcoming changes in the policies being implemented,” IOBE said in the report.

Sentiment in the retail sector rose to 62.7, the highest level in nine months, boosted by the sales season.

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