In February 2024, a deterioration was recorded in the economic climate with the Economic Sentiment Indicator (ESI) decreasing by 2.1 units compared to January 2024.
According to the University of Cyprus Economic Research Centre, the decline in the ESI stemmed from weakening consumer confidence and worsening business sentiment across all sectors, except for the construction sector.
Additionally, the decrease in the ESI in February is mainly linked to lower expectations for business activity as well as more pessimistic assessments of household and country economic conditions in general.
The climate in services declined due to more unfavorable assessments of the turnover in the last quarter and more restrained expectations for turnover in the next quarter.
As reported, the worsening of the climate in retail trade and manufacturing was a result of downward revisions in expectations for sales and production, respectively.
In construction, the climate strengthened due to more favorable assessments of ongoing projects and more positive expectations for the number of employees in the sector in the next quarter.
Consumer sentiment experienced a decline in February. Consumer responses regarding their recent and future economic situations were more negative in February. Additionally, consumers appeared more pessimistic about the future economic situation in Cyprus.
However, according to the University of Cyprus Economic Research Centre, the Economic Uncertainty Index declined in February for the second consecutive month, as a result of lower uncertainty between businesses (mainly in construction) and consumers.
The recording of the economic climate in Cyprus is conducted through the participation of the University of Cyprus Economic Research Centre (ERC), in collaboration with RAI Consultants Ltd, in the European program Joint Harmonised European Union Programme of Business and Consumer Surveys. The project is funded by the European Union, the Ministry of Finance, and the University of Cyprus.
