March economic sentiment steady

Economic sentiment remained steady in March, according to University of Cyprus data, unchanged from February and still below the recent high reached three years ago, just before Russia invaded Ukraine and directly impacted the island’s tourism, services and output sectors.

The university’s monthly Economic Sentiment Indicator (ESI-CypERC) remained at 109.0, the same level as February’s year-high, but still below the 111.5 recorded in February 2022.

The UCy Economics Research Centre data showed that the Services Confidence Indicator rose marginally, as firms assessed their recent performance (business situation, turnover) more favourably in March. However, firms revised their turnover expectations downwards.

The increase in the Retail Trade Confidence Indicator was due to improved views on recent and expected sales.

The Construction Confidence Indicator declined, as firms revised their employment plans downwards.

The decrease in the Industry Confidence Indicator was driven by a deterioration in firms’ views on the current levels of order books and the stock of finished products, despite an improvement in production expectations.

The Consumer Confidence Indicator increased slightly in March.

Consumers’ expectations about their financial situation and the general economic conditions in Cyprus improved; moreover, consumers’ attitudes towards major purchases remained favourable in March.

On the other hand, the Economic Uncertainty Indicator for Cyprus declined for the third consecutive month in March, owing to lower uncertainty levels among consumers and firms across all sectors, except services.