October economic sentiment improves

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In October 2022, economic sentiment in Cyprus improved as confidence was driven by the services sector and retail trade gains.

The Economic Research Centre of the University of Cyprus’ Economic Sentiment Indicator (ESI-CypERC) increased by 0.4 points compared with September.

The index went from September’s 101.2 to 101.6, but below the October 2021 level of 109.5.

The Services Confidence Indicator rose for the second month in a row, mainly due to more optimistic views on turnover over the next three months.

The Retail Trade Confidence Indicator increase was down to improved assessments of past sales and stock levels and upward revisions in sales expectations.

A drop in the Construction Confidence Indicator was driven by the deterioration in firms’ assessments of the current levels of order books.

The Industry Confidence Indicator decreased owing to downward revisions in production expectations.

A decline in the Consumer Confidence Indicator resulted from a deterioration in most components (three out of four).

In October, consumers assessed their current financial situation less favourably and revised their expectations about the future economic conditions in Cyprus downwards.

Moreover, consumers’ intentions to make major purchases weakened.

In October, economic uncertainty in Cyprus remained broadly stable at around the level registered in September.

Uncertainty in retail trade, construction and manufacturing rose, while services remained at the levels seen in August and September.

Uncertainty among consumers declined slightly in October but is still at a relatively high level.