CYPRUS: Economic sentiment improves due to business confidence

Economic sentiment in Cyprus improved in April 2019 as the University of Cyprus Economic Sentiment Indicator increased by 2.4 points compared to March.

“The increase was driven by stronger business confidence in services and, to a lesser degree, confidence improvements in industry among consumers”, said the UCY’s Economics Research Centre.

According to the survey, “the Services Confidence Indicator increased as a result of firms making more positive assessments of past business situation and past demand as well as upward revisions in demand expectations”.

The Retail Trade Confidence Indicator “did not change from the marginally positive level registered in March, as firms’ views on all three components of the Indicator (past sales, volume of stocks, expected sales) remained broadly unchanged”.

The survey recorded a marginal decrease in the Construction Confidence Indicator driven by downward revisions in employment plans.

Moreover, the Industry Confidence Indicator increased due to improvements in company assessments of the current level of order books and upward revisions in production expectations.  

The Consumer Confidence Indicator increased only marginally, as more favourable assessments about household-specific aspects (financial situation, intentions for major purchases) were almost offset by more pessimistic views on the future general economic conditions in Cyprus.