CYPRUS: Improved economic sentiment driven by business and retail confidence

In November economic sentiment in Cyprus improved as the University of Cyprus Economic Sentiment Indicator (ESI-CypERC) increased by 2.6 points – reaching 115.2 units – compared with October 2018.

It said the increase was driven by stronger business confidence in services and retail trade.

The Services Confidence Indicator increased as a result of firms’ improved assessments of their past business situation and their past demand.

The Retail Trade Confidence Indicator increased as respondents’ views on current stock volumes and future sales improved.

Meanwhile, the Construction Confidence Indicator deteriorated due to companies having a less favourable assessment of their current level of order books, and downward revisions in employment expectations.

The Industry Confidence Indicator decreased due to a large downward revision in production expectations.

And a decline in the Consumer Confidence Indicator was driven by downward revisions in consumers’ expectations about their future financial conditions and the future economic conditions in Cyprus.