The ESI, compiled by the University of Cyprus Economics Research Centre (ERC), declined by 0.5 units to 108.6 in February from 109.1 in January 2016, due to a deteriorated consumer confidence sentiment.

“The decline in consumer confidence in February, compared with the previous month, comes from more adverse expectations concerning the households’ economic situation and the possibility for savings in the next 12 months, as well as the less optimistic view on Cyprus’ economic situation in the next 12 months, including the conditions in the labour market,” the ERC said.

The ESI among the services sector, retail trade and manufacturing, rose in February.

The improvement in retail rate is associated with certain improvements in the current situation, as reflected in the evaluations of companies on inventory, as well as less negative views on sales in the next 12 months.

In manufacturing, the rise mainly reflects the companies’ expectations for an increase in production in the next 12 months.

The ESI in constructions remained unchanged compared with the negative levels of January, with the ERC pointing out that the climate is less negative compared with the ten first months of 2015. ESI in constructions climbed to -28 units in January and February from -43 units in November 2015 and -30 units in December.

The Economic Sentiment Indicator (ESI) is a composite indicator made up of five sectoral confidence indicators with different weights: Industrial confidence indicator, Services confidence indicator, Consumer confidence indicator, Construction confidence indicator Retail trade confidence indicator.

Source: InCyprus