Economic sentiment in Cyprus improved marginally in June, with the Economic Sentiment Indicator (ESI-CypERC) rising by 0.2 points compared with May, supported by stronger confidence in the retail trade and construction sectors as well as a further improvement in consumer sentiment.
According to the latest economic survey results, the increase in confidence in retail trade and construction more than offset a deterioration in business sentiment in the services sector, leading to the slight overall rise in the indicator.
Confidence in the retail trade sector strengthened as businesses reported improved assessments of recent sales, expected sales and stock levels. In the construction sector, sentiment rose significantly, driven by more favourable views regarding order books and upward revisions to employment expectations.
By contrast, the Services Confidence Indicator declined, reflecting less favourable assessments by firms of their recent business situation and turnover, as well as weaker expectations for turnover in the coming months.
In the industrial sector, confidence remained unchanged from May levels. Improved assessments of finished product stocks were offset by less favourable perceptions regarding current order books, while production expectations remained stable.
Consumer confidence increased for a second consecutive month in June, supported by more optimistic expectations regarding both households’ financial situation and the overall economic outlook for Cyprus.
Meanwhile, the Economic Uncertainty Indicator increased in June but remained below the levels recorded in March and April. Higher uncertainty was reported among consumers and firms in the services and construction sectors, although overall uncertainty remained relatively low, particularly among households and construction companies.
The survey on economic sentiment in Cyprus is conducted by the Economics Research Centre of the University of Cyprus in cooperation with RAI Consultants Ltd as part of the Joint Harmonised European Union Programme of Business and Consumer Surveys. The project is funded by the European Union, the Ministry of Finance and the University of Cyprus.
