The Economic Sentiment Indicator (ESI-CypERC) declined by 1.5 points compared to May 2016 as a result of the worsening of business confidence in the services, retail trade and industry sectors.
The Services Confidence Indicator fell due to firms’ less positive assessments of past business situation and demand as well as to more pessimistic views regarding firms’ turnover over the next three months.
The Retail Trade Confidence Indicator decreased because of more negative responses regarding firms’ sales and stocks.
The decline in the Industry Confidence Indicator is mainly driven by the downward revision of firms’ assessments of production plans over the next three months.
The Construction Confidence Indicator improved due to less pessimistic assessments of the level of current order books and employment plans.
The Consumer Confidence Indicator picked up as a result of the following: (i) consumers’ more optimistic views regarding the future financial situation of their household and general economic situation in Cyprus, including future labour market conditions; (ii) less negative attitude towards savings.