Cyprus business confidence declines sharply

Business confidence in Cyprus recorded a significant decline in the retail trade sector, while further deterioration is expected in the services and construction sectors according to a survey performed by the Economics Research Centre of the University of Cyprus in December 2008.
The December Economic Index fell to 69.2 units, 8.4 units lower compared to November 2008. Specifically, the negative business climate in retail trade was the result of the decline in retail sales in recent months, whilst further decline in sale orders to suppliers is
expected in the following quarter. According to the survey, retail sale prices in December are expected lower on a monthly basis.
As far as the construction sector is concerned, the survey finds that business climate in the sector is expected to deteriorate with both prices and employment conditions turning negative.