In June, economic sentiment improved as uncertainty among consumers was at its lowest ebb for three years, buoyed by business confidence and the services sector revival.
According to the Economics Research Centre of the University of Cyprus, economic sentiment significantly improved as the Economic Sentiment Indicator increased 4.3 points to 107.4 from May.
The rise was primarily driven by increased confidence in the services sector and among consumers.
After the losses recorded in April and May, the index seems to be gaining some momentum in June, which is likely to be temporary.
The Services Confidence Indicator experienced a strong increase, driven by improved views on past performance, including demand.
Additionally, there were modest upward revisions in demand expectations.
The Retail Trade Confidence Indicator showed a marginal rise attributed to more favourable assessments of current stock levels and upward revisions in sales expectations.
Despite a slight decline in assessments of recent sales, the overall sentiment remained positive in the retail sector.
A small decrease in the Construction Confidence Indicator resulted from a deterioration in assessments of the level of order books, and employment expectations moved down.
The marginal increase in the Industry Confidence Indicator was due to improved views on the stocks of finished products and more optimistic production expectations.
In June, consumers assessed their current and future financial situation more favourably and revised their expectations about the economic conditions in Cyprus upwards.
Moreover, consumers’ intentions to make major purchases over the next months strengthened markedly.