Economic euphoria dampened in October, indices show

The rising course of the Economic Sentiment Index and the Purchasing Managers Index (PMI) came to a halt in October, readings showed on Wednesday, in a sign of adjustment after the euphoria of the summer months and possibly due to the relative instability that continues to linger in the financial environment.

The sentiment index that the Foundation for Economic and Industrial Research (IOBE) compiles dropped to 98.3 points from 100.6 points in September, which means it has fallen back below the line (100 points) above which the economy is dominated by optimism.

The decline was somewhat predictable, given that the index had posted a rising course throughout the year until September. After the particularly dynamic third quarter of the year, which includes the high season for tourism, the optimistic estimates regarding the future course of the economy are now reduced, IOBE...