29.08.2022
Economic sentiment in Cyprus deteriorated to a 17-month low in August as the Economic Sentiment Indicator (ESI-CypERC) fell 4.5 points from July 2022. The decline in ESI-CypERC was associated with weaker business confidence in services and , to a lesser extent, a decline in economic confidence in construction and among consumers.
According to the Center for Economic Research of the University of Cyprus, service confidence declined as companies were less positive about their past performance and revised their turnover expectations downward.
The Retail Confidence Indicator remained unchanged. On the one hand, firms’ estimates of current inventory levels have improved, and on the other hand, firms’ views of past and future sales have worsened.
The decline in the construction confidence indicator was mainly driven by a downward revision in employment expectations.
The industry confidence indicator remained at the level recorded in July as all components of the indicator remained broadly stable, the statement said.
The consumer confidence indicator fell slightly, mainly due to the weakening of the intentions of consumers to make large purchases in the coming months.
In August, economic uncertainty in Cyprus eased as a result of reduced uncertainty in the services, construction and consumer sectors. Uncertainty among firms in retail increased, while uncertainty among firms in industry remained broadly unchanged.
