The economic sentiment in Cyprus deteriorated in August to a 17-month low, as the Economic Sentiment Indicator (ESI-CypERC) decreased by 4.5 points compared with July 2022. The decrease in the ESI-CypERC was due to weaker business confidence in services and, to a lesser degree, lower economic confidence in construction and among consumers.
According to a statement by the Economic Research Centre of the University of Cyprus, the Services Confidence Indicator decreased, as firms assessed their past performance less favorably and revised their turnover expectations downwards.
The Retail Trade Confidence Indicator remained unchanged. On the one hand, firms’ assessments of current stock levels improved, while, on the other hand, firms’ views on past and future sales worsened.
The decrease in the Construction Confidence Indicator was mainly driven by downward revisions in employment expectations.
The Industry Confidence Indicator stayed at the level registered in July, as all the components of the Indicator remained broadly stable, the statement says.
The Consumer Confidence Indicator decreased marginally, mainly driven by consumers’ weaker intentions of making major purchases over the next months.
In August, economic uncertainty in Cyprus declined as a result of lower uncertainty in services, construction and among consumers. Uncertainty among firms in retail trade increased, while uncertainty among firms in industry remained broadly unchanged.