The economic sentiment in Cyprus continued its downward trend for a second consecutive month in March ,with the Economic Sentiment Indicator (ESI-CypERC) dragged down by the weaker business confidence in all sectors.
According to the University of Cyprus Economic Research Centre (ERC), the ESI-CypERC in March recorded a drop of 1.2 unit, compared with February, declining to 102.1 units.
‘The decrease in the ESI-CypERC was driven by weaker business confidence in all sectors, as firms’ expectations about their business activities deteriorated’, the ERC said.
Despite improved assessments of the recent business situation in March, the ERC said that the Services Confidence Indicator decreased again, ‘as firms’ views on their expected turnover continued to deteriorate.’
The Retail Trade Confidence Indicator declined mainly driven by the worsening views on future sales, while the Construction Confidence Indicator decreased, as firms revised their employment plans downwards.
Moreover, the Industry Confidence Ind
icator fell markedly in March (drop of 5 points), as firms’ assessments of the stocks of finished products deteriorated, possibly indicating lower demand for manufacturing goods, and production expectations declined to a 14-month low, the ERC added.
According to the ERC, the Consumer Confidence Indicator rose in March, as consumers partially reversed their pessimistic views on their financial situation and the country’s economic conditions expressed in February.
However, the ERC added, consumers’ intentions to make major purchases over the next months weakened in March.
Furthermore, in March, the economic uncertainty indicator decreased also by the second consecutive month to 29.5 units, although remaining above the level registered in March 2023, the ERC concluded.
Source: Cyprus News Agency