“This increase is due to an improvement in the economic climate in all sectors except for services, with consumer confidence having the biggest contribution”.

The Economics Research Centre attributes the improvement of the economic climate among consumers to more optimistic estimates on the future economic situation of their households and of Cyprus, in general, including the labour market conditions, as well as to a less negative attitude towards savings in the next twelve months.

“The bettering of climate in retail trade is due to less negative assessments regarding sales in the past three months and more positive estimates for the turnover in the next three months”.

According to the ERC, expectations for a rise of employment in constructions in the coming months led to a slight improvement of the climate, although it remains quite unfavourable compared to other sectors.

In manufacturing the improved climate is mainly related to less pessimistic assessments of current orders to companies and expectations for increased production in the next quarter.

On the other hand, the ERC said that the climate in services declined marginally due to a small deterioration of assessments on the current situation, while estimates of the expected demand were more positive. At the same time, confidence in services still remains at higher levels than in other sectors.

Source: Famagusta Gazette