Economic sentiment rises moderately in Cyrpus, falls slightly in the EU in May

Economic sentiment in Cyprus increased from 115.5 points in April to 116.1 in May, according to the European Commission. Meanwhile following the strong increases of April, the Economic Sentiment Indicator (ESI) softened in May in both the euro area (by 0.5 points to 109.2) and the EU (by 1.0 point to 109.7).

The moderation in euro-area sentiment resulted from decreases in services and retail trade confidence, while confidence in industry, construction and among consumers remained broadly stable at high levels. Amongst the largest euro-area economies, the ESI rose strongly in France (+1.5) and slightly in Spain (+0.5), while it decreased in Italy (-0.9) and, more markedly, in Germany (-1.5) and the Netherlands (-2.1).

The more pronounced moderation in the headline indicator for the EU (-1.0) was mainly due to the marked deterioration of sentiment in the largest non-euro area EU economy, the UK (-2.3), and a smaller decrease in Poland (-0.9). In line with the euro area, confidence remained broadly stable in industry and among consumers. Confidence worsened more in services and retail trade, and decreased also in the construction sector. Yet, financial services sector confidence deteriorated only slightly.

At the same time In May 2017, the Business Climate Indicator (BCI) for the euro area dropped (-0.20 points to +0.90). The correction was driven by managers sharply worsened assessment of the past production and, to a lesser extent, the stocks of finished products. By contrast, managers production expectations and their views on overall order books and export order books improved.

Source: Cyprus News Agency