Economic sentiment deteriorated in April

Economic sentiment deteriorated in Cyprus this April, with the relevant indicator dropping 2.8 points compared with March 2023. The Consumer Confidence Indicator also decreased.

The Economic Sentiment Indicator’s decline has been attributed to weaker business confidence in services and industry, and from significant confidence losses among consumers, an announcement by the Economics Research Centre of the University of Cyprus said.

Moreover, the Services Confidence Indicator declined as firms revised their demand expectations downwards, despite the slight improvement in firms’ views on past business situation.

A slight increase in the Retail Trade Confidence Indicator resulted from more favourable assessments of past sales and improved views on the current stock levels.

Furthermore, it is noted that the increase in the Construction Confidence Indicator was driven by improvements in both of its components. “In April, firms assessed their current levels of order books more favourably and revised their employment expectations upwards.”

A slight decrease in the Industry Confidence Indicator was mainly due to the deterioration of firms’ assessments of the stocks of finished products.

The Consumer Confidence Indicator decreased as most of its components deteriorated. “Consumers revised their expectations about their future financial conditions and the economic conditions in Cyprus downwards. Furthermore, consumers’ intentions to make major purchases in the near future weakened in April,” it is noted.

Economic uncertainty rose in Cyprus this April, due to higher uncertainty levels experienced by firms in services. On the other hand, uncertainty among firms in retail trade and construction declined, while uncertainty among manufacturing firms stayed at the same level registered in March. Uncertainty among consumers declined further in April, registering its lowest value in three years.