Economic sentiment improves

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Economic sentiment improved during September by 4.5 points compared with August, as consumer confidence recovered, according to the Economics Research Centre of the University of Cyprus (CypERC).

The increase in the ESI-CypERC index from 96.7 to 101.2 was driven by confidence gains in all sectors and consumers.

However, the index is still lower than in February (111.4).

The increase in the Services Confidence Indicator resulted from firms’ improved assessments of their past performance (business situation and demand) and upward revisions in turnover expectations.

Upward revisions in sales expectations mainly drove a small improvement in the Retail Trade Confidence Indicator.

The Construction Confidence Indicator rose mainly because of more favourable assessments of the current levels of order books.

The survey showed that the Industry Confidence Indicator increased because of improved views on the current levels of order books and stocks of finished products, despite downward revisions in production expectations.

The increase in Consumer Confidence Indicator resulted from improvements in all its components.

In September, consumers assessed their current financial conditions more favourably and revised their expectations about their financial conditions and the economy upwards.

Moreover, consumers’ intentions to make major purchases picked up in September.

Economic uncertainty in Cyprus rose in September because of the higher levels registered among consumers; uncertainty among firms in construction, retail trade and industry decreased.