29.10.2022
Economic sentiment in Cyprus improved slightly in October 2022, with the Economic Sentiment Index (ESI) up 0.4 points from September 2022.
According to a statement released this week by the Center for Economic Research of the University of Cyprus, the slight increase in the index was due to an improvement in the business climate in the service and retail sectors.
The improvement in sentiment in the services sector is primarily due to the upward revision of expectations for turnover for the fourth quarter of the year.
In retail, sentiment rose on more favorable assessments of the current situation and upward revisions to future sales expectations.
The decline in sentiment in the construction sector was caused by more pessimistic estimates of projects under implementation.
In the manufacturing sector, sentiment deteriorated due to more pessimistic estimates of output expected in the fourth quarter.
The decline in consumer sentiment in October was the result of more unfavorable assessments of the current economic situation of households, as well as more pessimistic assessments of the country’s future economic situation.
The weakening of consumer intentions in terms of making large purchases also contributed to the deterioration in consumer sentiment in general.
Moreover, the index of economic uncertainty in October did not undergo significant changes compared to the previous month.
“Starting in August, the economic sentiment index tends to lower levels than between January and July 2022,” the report says.
“Uncertainty in the services sector has fluctuated around the levels of the previous two months, while the rest of the sectors have seen growth,” it added, noting that consumer uncertainty has eased slightly, although it remains at a fairly high level.
