In April 2023, economic sentiment in Cyprus deteriorated, as the Economic Sentiment Indicator (ESI-CypERC) decreased by 2.8 points compared with March 2023. The Consumer Confidence Indicator also decreased. The decrease in the ESI-CypERC resulted from 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 says. Moreover, the Services Confidence Indicator declined as firms revised their demand expectations downwards, despite the slight improvement in firms' views on past business situation. The small increase in the Retail Trade Confidence Indicator resulted from more favourable assessments of past sales and improved views on the current stock levels, it is added. 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,' the announcement says. The slight decrease in the Industry Confidence Indicator, it is added, 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. Finally, in April, economic uncertainty in Cyprus rose due to higher uncertainty levels experienced by firms in services. In April, uncertainty among firms in retail trade and construction declined, while uncertainty among manufacturing firms stayed at the level registered in March. Uncertainty among consumers declined further in April, registering its lowest value in three years, the announcement concludes.
Source: Cyprus News Agency