CYPRUS: Drop in consumer confidence pushed economic mood down

The Economic Sentiment Indicator (ESI) for February compiled by the University of Cyprus Economics Research Centre (ERC) dropped marginally due to reduced confidence among consumers.

 
The ESI declined by 0.5 units to 108.6 in February from 109.1 in January.
“The decline in consumer confidence in February, compared with the previous month, comes from more adverse expectations concerning the households’ economic situation and the possibility for savings in the next 12 months, as well as the less optimistic view on the economic situation in the next 12 months, including the conditions in the labour market,” the ERC said.
The ESI for the services sector, retail trade and manufacturing rose in February.
The improvement in retail rate is linked to improvements in the current situation, as reflected in the evaluations of companies on inventory, as well as less negative views on sales in the next 12 months.
In manufacturing, the rise mainly reflects the companies’ expectations for an increase in production in the next 12 months.
The ESI in construction remained unchanged compared with the negative levels of January, with the ERC pointing out that the climate is less negative compared with the ten first months of 2015. ESI in construction climbed to -28 units in January and February from -43 units in November 2015 and -30 units in December.