CYPRUS: Economic sentiment declined in October

In October economic sentiment in Cyprus deteriorated as the University of Cyprus Economic Sentiment Indicator (ESI-CypERC) decreased by 2.4 points compared with September.

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It said the decline was mainly driven by lack of confidence in the services sector.

But economic confidence in industry, construction, retail trade and among consumers changed only marginally in October.

The Services Confidence Indicator declined due to a deterioration in firms’ assessments of their business situation as well as past and expected demand.

The Retail Trade Confidence Indicator increased as a result of improved assessments of past sales and

upward revisions in sales expectations.

Construction confidence increased due to improved assessments of the levels of order

books.

The Industry Confidence Indicator declined as a result of a deterioration in company assessments of the

current level of order books and stocks of finished products.

Economists said the marginal increase in the Consumer Confidence Indicator was driven by improved optimism

regarding future economic conditions in Cyprus, including the job market.

However, consumers’ expectations about their own financial conditions and savings deteriorated.