ESI improves in Cyprus and euro area in January

Economic Sentiment Indicator (ESI) improved in Cyprus and the euro area in January, the European Commission said Wednesday.

In January the ESI increased by 1.4 points in both the EU (to 90.6) and the euro area (to 89.2). In the EU, confidence improved in services, construction, retail trade and among consumers, while deteriorating slightly in industry, the Economic and Financial Affairs Directorate General of the Commission said in its monthly survey.

In the euro area, confidence picked up in construction, services and among consumers and remained broadly unchanged in industry and retail trade. In both regions, the ESI rose for the third consecutive month but remains well below its long-term average. Among seven EU Member States, the ESI registered increases in Germany (+2.5), the Netherlands (+1.0), Spain (+0.5) and the UK (+0.5). It remained unchanged in Italy and broadly stable in France (-0.3), while deteriorating in Poland (-1.3).

In Cyprus the ESI increased from 73.5 points in December to 77.8 in January. Confidence increased in industry, services, retail trade and among consumers, while it deteriorated in construction.

In particular, Cyprus services confidence indicator increased from -40.7 in December to -33.9 in January, industrial confidence indicator increased from -27.9 in December to -24.2 in January and retail trade confidence indicator increased from -31.8 in December to -30.6 in January. Consumer confidence indicator recorded a significant improvement and increased from -61.3 in December to -53.8 in January, whereas construction confidence indicator deteriorated from -56.5 in December to -62.6 in January.