28.07.2022
Economic sentiment improved in July, the Center for Economic Research at the University of Cyprus said on Wednesday.
Specifically, in its monthly newsletter, the think tank reports that economic sentiment in Cyprus improved in July 2022 as the Economic Sentiment Indicator (ESI-CypERC) rose by 1.4 points compared to June 2022.
“The increase in ESI-CypERC was the result of increased business confidence in the service and industrial sectors,” it notes.
It indicates that the increase in the Service Confidence Indicator was driven by an improvement in firms’ recent business environment and an upward revision in demand expectations.
On the other hand, the Retail Confidence indicator eased slightly as companies revised down their sales expectations and were less optimistic about their current inventory levels.
According to the UCys Center for Economic Research, the construction confidence indicator remained unchanged for the second month in a row, as firms’ assessments of the level of order books and employment expectations remained broadly stable.
“The growth of industry confidence indicators is associated with an upward revision in manufacturing expectations,” the report says.
The consumer confidence indicator remained unchanged for the second month in a row.
On the one hand, consumers were more positive about their recent financial situation and were less pessimistic about their future financial situation and future economic conditions in Cyprus. At the same time, consumers’ intentions to make large purchases have “significantly weakened”.
“In July, economic uncertainty in Cyprus increased as a result of increased uncertainty in industry, services and construction; uncertainty among firms in retail trade and among consumers has decreased,” the center said in a statement.
