Economic sentiment deteriorates in July

08:05 - 28 July 2023

Economy

Economic sentiment in Cyprus deteriorated in July, with the relevant Indicator dipping 2.7 points compared with June.

The decline, according to a report released by the University of Cyprus’ Economics Research Centre, was down to weaker business confidence in the services sector and, to a lesser extent, lower consumer confidence.

The Services Confidence Indicator decreased as all of its components deteriorated. Firms assessed their past performance (business situation and demand) less favourably and revised their demand expectations downwards.

The Retail Trade Confidence Indicator was the same as June. Improved views on recent sales were offset by deteriorating assessments of current stock levels, while sales expectations stayed largely unchanged.

An increase in the Construction Confidence Indicator was due to more favourable assessments of the level of order books and upward revisions in employment expectations.

The Industry Confidence Indicator improved for the third month in a row. In July, firms’ views on the current levels of order books improved and production expectations continued to pick up; however, firms’ assessments of the stocks of finished products deteriorated.

The Consumer Confidence Indicator decreased, as a result of the downward revisions in consumers’ expectations about the financial situation of their households and the economic conditions in Cyprus. Nevertheless, consumers’ intentions to make major purchases over the next months strengthened in July.

In July, economic uncertainty in Cyprus rose owing to higher uncertainty among consumers and among firms in all sectors, except retail trade.

Economic sentiment deteriorates in July

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