Economic climate declines marginally in February

Economic climate in Cyprus declined marginally in February on the back of deteriorating climate in confidence in industry, consumers and to a lesser degree in retail trade, the University of Cyprus’ Economic Research Centre Research (ERC) said on Tuesday.

The Economic Sentiment Indicator (ESI-CypERC) in February declined by 0.1 points compared with January to 112.3 points, marking a reduction for the second consecutive month.

The decline was driven by confidence losses in industry, among consumers and, to a much lesser degree, in retail trade, the ERC said.

On the other hand, business confidence in services strengthened, while confidence in construction remained unchanged, the ERC added.

The Services Confidence Indicator picked up as a result of firms’ more optimistic views on their past business situation and their past demand.

According to the ERC, the marginal decrease in the Retail Trade Confidence Indicator was driven by deterioration in firms’ assessments of past sales, and downward revisions in sales expectations.

The Construction Confidence Indicator remained unchanged as firms’ upward revisions in employment expectations were offset by more negative assessments of the current level of their order books.

Furthermore, the Industry Confidence Indicator declined as a result of a deterioration in firms’ views on their stocks of finished products, and downward revisions in production expectations.

According to the ERC, the Consumer Confidence Indicator decreased as a result of consumers’ less favourable responses regarding their past financial situation, their future financial conditions, and the future economic conditions in Cyprus.

Source: Cyprus News Agency