Economic sentiment in Cyprus deteriorated slightly in November, a business survey by the Economics Research Centre of the University of Cyprus, published on Thursday, shows. A drop which is attributed to a deterioration in the construction sector confidence as well as consumer confidence.
According to the survey in November 2020, economic sentiment in Cyprus deteriorated slightly as the Economic Sentiment Indicator (ESI-CypERC) decreased by 0.5 points compared with October 2020.
“The decrease in the ESICypERC resulted from the weakening of business confidence in construction and the worsening of consumer confidence,” the Economics Research Centre says.
On the other hand, a marginal increase in the Services Confidence Indicator “was driven by firms’ more favourable views on their past business situation and upward revisions in demand expectations.”
The Retail Trade Confidence Indicator remained unchanged compared with October; firms’ assessments of past sales and current stock levels, as well as sales expectations stayed broadly stable.
“The decrease in the Construction Confidence Indicator was driven by a deterioration in firms’ assessments of the levels of order books and downward revisions in employment expectations,” the business survey reads.
The Industry Confidence Indicator increased marginally “due to more favourable assessments of the current levels of finished goods stocks and upward revisions in production expectations.”
“The Consumer Confidence Indicator fell to its lowest level since April,” it says.
In November, it adds, consumers assessed their recent financial conditions more negatively; also, consumers revised their expectations about their future financial conditions and the future economic conditions in Cyprus downwards.
Their intentions to make major purchases weakened marginally, it notes.