EC: Economic sentiment in Cyprus continues to improve

Economic sentiment in Cyprus continues to improve, according to the Economic and Consumer Survey conducted by the European Commission for December 2009.

The economic sentiment indicator (ESI) in Cyprus in December 2009 rose to 65.2 units from 63,6 in November, while in the EU27 ESI gained 4.1 points, reaching 92.0 and in the Euro area the December ESI reached 91.3

With regard indicators per sector, Cypriot industrial confidence declined to -13 units in December from -12 the previous month, while retail trade indicator remained unchanged in -28 units. Confidence in the services sector was -14 in November and -10 in December 2009, whereas the construction confidence indicator recorded a sizeable improvement from -43 in November to – 36 in December. Consumer confidence slightly declined to -39 in December from -38 in November.

Concerning employment, the confidence indicator for the next months remained negative both in the EU and in Cyprus, a fact which confirms the EU Commission concerns for further rise in EU unemployment. The employment expectations indicator in the EU reached -22 units from -24, while in Cyprus the figure declined to -6 units in December from -3 in November.

According to the Commission projections, unemployment in 2010 will climb to 28 million from 23 million in November 2009.