CYPRUS: Business confidence driving economic indicator upward

Stronger business confidence in services and construction is driving Cyprus’ economic indicator upward, according to the University of Cyprus economic research centre.

In July, economic sentiment in Cyprus improved as the Economic Sentiment Indicator (ESICypERC) increased by 2.0 points compared with June 2018.

The centre said the monthly rise was driven by stronger business confidence in services, construction and industry.

It said the Services Confidence Indicator increased due to companies being more optimistic views on their business situation as well as past and expected demand.

Although the Retail Trade Confidence Indicator decreased marginally as respondents’ views on current stock volumes and future sales deteriorated.

However, the Construction Confidence Indicator improved due to firms having a more favourable assessments of future employment plans.

The Industry Confidence Indicator increased due to a significant upward revision in production expectations.

But the Consumer Confidence Indicator decreased as consumers showed concern about their future financial situation and the future economic conditions in Cyprus, including job prospects.

Furthermore, consumers revised their savings expectations downwards negatively affecting the indicator.