In February 2019, economic sentiment in Cyprus deteriorated marginally as the Economic Sentiment Indicator (ESI-CypERC) edged down by 0.1 points compared with January 2019.
The Economic Research Centre of the University of Cyprus said the decline was driven by confidence losses in industry, among consumers and, to a much lesser degree, in retail trade.
Business confidence in services strengthened, while confidence in construction remained unchanged.
- The Services Confidence Indicator picked up as a result of firms’ more optimistic views on their past business situation and their past demand
- The marginal decrease in the Retail Trade Confidence Indicator was driven by a deterioration in firms’ assessments of past sales, and downward revisions in sales expectations.
- The Construction Confidence Indicator remained unchanged as firms’ upward revisions in employment expectations were offset by more negative assessments of the current level of their order books.
- The Industry Confidence Indicator declined as a result of a deterioration in firms’ views on their stocks of finished products, and downward revisions in production expectations.
- The Consumer Confidence Indicator decreased as a result of consumers’ less favourable responses regarding their past financial situation, their future financial conditions, and the future economic conditions in Cyprus.