articles | 28 July 2017

Economic sentiment in Cyprus deteriorates in July 2017

Economic sentiment in Cyprus deteriorated marginally in July, the Economic Research Centre (ERC) of the University of Cyprus has said.

The Economic Sentiment Indicator (ESI-CypERC) declined by 0.3 points compared with June 2017, as a result of weaker confidence in services and retail trade, the ERC noted. 

It said that some negative developments in consumer expectations in July have left the Consumer Confidence Indicator unchanged from its June value due to rounding.

However, the Centre added, these developments slightly weigh on the ESI-CypERC due to the large importance assigned to consumer confidence in the construction of the sentiment indicator.

The Services Confidence Indicator fell due to less optimistic views expressed by firms regarding their recent business situation and demand.

The Retail Trade Confidence Indicator decreased as a result of the deterioration in firms’ assessments of past sales and current stock volumes.

The Construction Confidence Indicator rose due to firms’ less pessimistic views on the current level of order books and upward revisions of future employment plans.

The Industry Confidence Indicator increased as a result of improvements in assessments of current orders and stock volumes of finished products, and upward revisions in production expectations.

The Consumer Confidence Indicator remained broadly unchanged. Expectations regarding future unemployment and households’ future financial condition remained roughly at their June levels.

Expectations regarding the future general economic conditions in Cyprus as well as consumers’ savings intentions weakened, according to the ERC.

Source: Famagusta Gazette

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