In January 2020, economic sentiment in Cyprus improved as the Economic Sentiment Indicator (ESICypERC) increased by 3.3 points compared with December 2019, according to the Economic Research Centre of the University of Cyprus.
The increase resulted primarily from stronger business confidence in services and, to a smaller extent, from confidence improvements in industry, retail trade and among consumers.
• The 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 Retail Trade Confidence Indicator increased marginally as firms’ less favourable views on their past performance were offset by upward revisions in sales expectations.
• The Construction Confidence Indicator deteriorated due to firms’ less favourable assessments of the current levels of their order books.
• The Industry Confidence Indicator increased as a result of firms’ more positive assessments of the current levels of their order books and stocks of finished products, which more than compensated for downward revisions in production expectations.
• The Consumer Confidence Indicator increased marginally mainly due to consumers’ stronger intentions to make major purchasesin the next 12 months.