Economic sentiment up in November

Economic sentiment improved in Cyprus in November due mainly to services and retail trade.

In particular, the Economic Sentiment Indicator (ESI) which is compiled by the University of Cyprus Economic Research Centre (ERC) was up by 2.6% in November compared to October reaching 115.2 units.

The increase was driven by stronger business confidence in services and retail trade, the ERC points out.

According to the data the Services Confidence Indicator increased as a result of firms’ improved assessments of their past business situation and their past demand.

At the same time, the Retail Trade Confidence Indicator increased as respondents’ views on current stock volumes and future sales improved.

On the other hand, the Construction Confidence Indicator deteriorated due to firms’ less favourable assessments of their current level of order books, and downward revisions in employment expectations.

Likewise, the Industry Confidence Indicator recorded a drop due to a large downward revision in production expectations.

A drop in the Consumer Confidence Indicator was driven by downward revisions in consumers’ expectations about their future financial conditions and the future economic conditions in Cyprus, the ERC says.

Source: Cyprus News Agency