In January 2019, economic sentiment in Cyprus deteriorated as the Economic Sentiment Indicator (ESI-CypERC) decreased by 3.8 points compared with December 2018.
The Economic Research Centre of the University of Cyprus said the decline was mainly driven by confidence losses in services and industry. Economic confidence in construction remained unchanged, while confidence in retail trade changed only marginally. Consumer confidence, measured by the revised Consumer Confidence Indicator,strengthened slightly.
* The Services Confidence Indicator declined as a result of a deterioration in firms’ assessments of past business situation and past demand, and a significant downward revision in demand expectations.
* The Retail Trade Confidence Indicator decreased marginally mainly as a result of downward revisions in sales expectations.
* The Construction Confidence Indicator remained unchanged as firms’ improved views on the current level of order books were offset by downward revisions in employment plans.
* The Industry Confidence Indicator decreased mainly due to a large downward revision in production expectations, and a deterioration in firms’ assessments of the current level of order books.
* The small increase in the revised Consumer Confidence Indicator was driven by improvements in consumers’ views on all components of the Indicator, namely:
(i) household’s financial situation over the past 12 months;
(ii) household’s expected financial situation over the next 12 months;
(iii) expected general economic situation in the country over the next 12 months;
(iv) intentions of making major purchases over the next 12 months.