Economic sentiment shows decrease in February according to CypERC

In February 2024, economic sentiment in Cyprus deteriorated, as the Economic Sentiment Indicator (ESI-CypERC) decreased by 2.1 points compared with January.

According to the University of Cyprus Economics Research Center, the decrease in the ESI-CypERC was driven by lower confidence among consumers and weaker business confidence in all sectors except construction. 

It notes that the Services Confidence Indicator decreased, as firms’ assessments of their past and expected turnover deteriorated.

"The decrease in the Retail Trade Confidence Indicator was mainly due to downward revisions in sales expectations" it says.

Regarding the Construction Confidence Indicator, the Economics Research Center says it has increased, as firms’ views on the current levels of order books improved and employment expectations picked up. 

The Industry Confidence Indicator declined marginally, mainly because of downward revisions in production expectations. 

The Consumer Confidence Indicator decreased as three (out of four) of its components deteriorated. In February, consumers’ views on their recent financial situation worsened; moreover, consumers’ expectations about their future financial conditions and the economic conditions in Cyprus weakened, it notes.

In addition, in February, economic uncertainty in Cyprus decreased for the second month in a row, because of lower uncertainty levels among firms (mainly in construction) and among consumers.

The Economics Research Centre of the University of Cyprus (CypERC) and RAI Consultants Ltd participate in the Joint Harmonised European Union Programme of Business and Consumer Surveys. CypERC acknowledges funding from the European Union, the Ministry of Finance and the University of Cyprus for conducting the project “Business and Consumer Surveys” in Cyprus. It is co-funded by the European Union.

(Source: CNA)