Economic sentiment in Cyprus improved in December with the Economic Sentiment Indicator (ESI-CypERC) increasing by 3.4 points compared with November 2018, the Economic Research Centre of the University of Cyprus said on Monday.
The increase was mainly driven by stronger business confidence in services and industry, it added. The marginal improvements in confidence in the construction sector and among consumers had a negligible effect on the Indicator.
The ERC said the Services Confidence Indicator increased as a result of firms’ improved assessments of past business situation and past demand, and upward revisions in demand expectations.
The Retail Trade Confidence Indicator decreased due to a deterioration in firms’ assessments of past sales and current stock volumes, and downward revisions in sales expectations.
The Construction Confidence Indicator increased marginally due to firms’ improved assessments of their current levels of order books.
The Industry Confidence Indicator increased as a result of improved assessments of the stocks of finished products, and upward revisions in production expectations.
The marginal increase in the Consumer Confidence Indicator was driven by small upward revisions in consumers’ expectations regarding their future financial situation and the future economic conditions in Cyprus,