CYPRUS: Economic sentiment improves in November on business confidence

Economic sentiment in Cyprus improved in November due to confidence in services and construction, the University of Cyprus Economic Research Centre said.

According to the survey, the Economic Sentiment Indicator (ESI-CypERC) increased by 1.2 points to 111 from 109.8 in October. On an annual basis the index is down 1.9 points.

It said the uptick “resulted mainly from stronger business confidence among firms in services and construction as well as improved consumer confidence.”

The increase in the Services Confidence Indicator was driven by firms having a more favourable view on their past performance (business situation and demand) and upward revisions in demand expectations.

The drop in the Retail Trade Confidence Indicator was due to downward revisions in sales expectations.

According to the survey the Construction Confidence Indicator improved mainly due to upward revisions in employment expectations.

At the same time, the Industry Confidence Indicator rose marginally as a result of firms’ improved views on the current level of their order books.

The increase in the Consumer Confidence Indicator was driven “by more favourable assessments of household’s financial situation, upward revision in consumers expectations regarding economic conditions and stronger intentions to make major purchases”.

Source: The Financial Mirror