Economic sentiment in Cyprus improved in August as the Economic Sentiment Indicator (ESICypERC) increased by 3.6 points compared with July 2019.
The increase comes after a 12 month low in July and resulted from stronger business confidence in the service sector and, to a lesser extent, from confidence gains in the retail trade and construction sectors.
The large increase in the Services Confidence Indicator was driven by firms’ more favourable views on their past performance (business situation and demand) and upward revisions in demand expectations.
The marginal increase in the Retail Trade Confidence Indicator resulted from firms’ improved assessments regarding their stock volumes.
The increase in the Construction Confidence Indicator was mainly due to upward revisions in employment expectations.
The decrease in the Industry Confidence Indicator resulted from less favourable assessments of the stocks of finished products and downward revisions in production expectations.
The Consumer Confidence Indicator decreased marginally as consumers’ expectations about the future economic conditions in Cyprus were revised downwards and consumers’ intentions of making major purchases weakened.