Economic sentiment improved in January 2014 for the 9th consecutive month according to the economic sentiment indicator of the University of Cyprus Economics Research Centre, reaching a record high in two and a half years and recording an increase of 2,4 units compared to December 2013.
According to the Economics Research Centre, this increase is largely due to an improvement of the economic sentiment in services and to a lesser extent to retail and manufacturing.
Despite the fact that confidence indicators for services, retail trade and manufacturing remain negative, their trend for improvement seems to be bolstered in recent months, reflecting mainly the flexibility these areas are showing amidst an environment of recession, the Centre says.
The upward trend in services is a result of the more positive reviews on businesses current circumstances and more favourable demand prospects.
On retail and manufacturing the improvement has to do with an increase in sales in the last quarter and of expectations for higher production levels in the coming months respectively.
On the opposite side of the spectrum, a deterioration of business confidence in construction is due to more negative assessment for current and future projects.
According to the Centre, the level and fluctuations of the economic sentiment indicators in construction and consumers indicates that trust is not been restored in a uniform manner in all economic sectors, thus creating risks for the economic activity in the coming quarters.
Get all the latest news and videos in your inbox. Register FREE