CYPRUS: Economic sentiment improved in April to stem recent decline

Economic Sentiment improved in April for the first time this year due to stronger business confidence in the services sector along with a milder upswing in industry and among consumers, the University of Cyprus Economic Research Centre (ERC) said.

The Economic Sentiment Indicator (ESI) climbed 2.4 points to 112.7 points in April compared to 110.3 the previous month. At the same time last year, the index was at a higher 115.9 points

According to the ERC, the Services Confidence Indicator increase was driven by companies having a more favourable assessment on their past performance (business situation and demand), as well upward revisions in demand expectations.

Furthermore, the Retail Trade Confidence Indicator did not change from the marginally positive level registered in March, as firms viewed past sales, volume of stocks and expected sales as broadly unchanged.

The marginal decrease in Construction Confidence Indicator was a result of downward assessments of company employment plans.

Economists said more favourable assessments of the current level of order books, and upward revisions in production expectations resulted in an increase to the Industry Confidence Indicator.

The Consumer Confidence Indicator increased only marginally as more positive assessments about household-specific aspects (financial situation, intentions for major purchases) were almost offset by more pessimistic views on the future of Cyprus’ economy.