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articles | 27 July 2016

Cyprus' July 2016 economic sentiment defies Brexit vote aftermath

The economic sentiment indicator rose by 1.6 units to 109.6 units in July 2016, compared to the previous month, in defiance of the British voters’ decision in June to exit the European Union, causing global financial turmoil and a 10% plunge of the currency of the UK, Cyprus’ largest source of incoming tourism, the University of Cyprus said.

The improved economic sentiment in July was on more optimistic responses from interviewed companies in services, retail trade, and construction, the Economic Research Department of the University of Cyprus said in a statement on its website on Wednesday. Business confidence in industry and consumer confidence deteriorated marginally.

Interviewed services companies justified their optimism with more positive evaluation of their financial situation and demand over the past three months, the ERC said. In retail, companies were upbeat over their sales and inventories and over an upward revision of their demand expectations over the next three years. Construction companies were less pessimistic about projects in progress and expected hiring.

More pessimistic responses concerning the current order book and inventories of interviewed companies in industry meant a marginal deterioration of confidence, the academic institution continued. Finally, more concerns about the future financial situation of households and the labour market situation led to a marginally weaker consumer confidence.

Source: Cyprus Mail

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