Economic sentiment improved in July

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Cypriot economic sentiment improved in July due to stronger business confidence in services and industry, according to a University of Cyprus index.

The Economic Sentiment Indicator (ESI-CypERC) increased by 1.4 points compared with June.

It reached 101.2 points in July, a reduction from 104.2 a year ago.

The increase in the Services Confidence Indicator was driven by improvements in firms’ current business situation and upward revisions in demand expectations.

On the other hand, the Retail Trade Confidence Indicator declined marginally as firms revised their sales expectations downwards and assessed their current stock levels less favourably.

According to UCy’s Economic Research Centre, the Construction Confidence Indicator remained unchanged for the second month, as company assessments of order books and employment expectations remained stable.

“The rise in the Industry Confidence Indicators is attributed to upward revisions in production expectations,” it said.

The Consumer Confidence Indicator remained unchanged for the second consecutive month.

Consumers assessed their recent financial situation more favourably and were less pessimistic about their future financial situation and economic conditions in Cyprus.

At the same time, consumers’ intentions to make major purchases “weakened significantly.”

“In July, economic uncertainty in Cyprus rose due to higher uncertainty in industry, services and construction; uncertainty among firms in retail trade and consumers declined.”