In February 2023, economic sentiment in Cyprus improved further, as the Economic Sentiment Indicator (ESI-CypERC) increased by 1.9 points compared with January 2023.
According to a survey of the Economics Research Centre of the University of Cyprus, the increase in the ESI-CypERC was mainly driven by confidence gains in services and among consumers.
The Services Confidence Indicator increased as a result of improved views on firms’ past performance (demand and business situation), while the Retail Trade Confidence Indicator decreased, as all the components of the indicator (views on recent sales, assessments of current stock levels, sales expectations) worsened, it says.
Moreover, it notes that the marginal increase in the Construction Confidence Indicator was due to more favourable assessments of the levels of order books, despite downward revisions in employment expectations.
In addition, the Industry Confidence Indicator remained stable at the level reached in January and firms’ assessments of the stocks of finished products and production expectations improved, while views on the current level of order books deteriorated.
Furthermore, the Consumer Confidence Indicator improved for the fourth consecutive month. In February, it adds, consumers assessed their recent and future financial conditions more favourably, and revised their expectations about the economic conditions in Cyprus upwards.
“Nevertheless, consumers’ intentions to make major purchases over the next months weakened” it says.
In February, economic uncertainty in Cyprus declined as a result of the lower levels of uncertainty observed among firms in all sectors except retail trade.
Uncertainty among consumers remained unchanged relative to the level registered in January, the survey concludes.
Source: Cyprus News Agency