Economic sentiment declined in May

08:50 - 27 May 2025

Economy

The Economic Sentiment Indicator declined by 1.5 points in May compared to April, mainly driven by a further weakening in business confidence in the services sector.

According to the monthly review by University of Cyprus' Economics Research Centre of the (CypERC), the Services Confidence Indicator dropped for the second consecutive month in May and according to CypERC, firms’ assessments of their recent business situation, including turnover, continued to worsen and firms’ turnover expectations became less optimistic.

The Retail Trade Confidence Indicator remained unchanged in May, as the downgrade in sales expectations was offset by improved assessments of the current stock levels.

CypERC figures show that the small decline in the Construction Confidence Indicator was due to a sharp worsening of firms’ views on their order book levels, despite a significant upward revision in employment expectations for the second consecutive month.

The Industry Confidence Indicator increased marginally, owing to upward revisions in production expectations. Moreover, the Consumer Confidence Indicator rose slightly, as consumers’ assessments of their recent and expected financial situation improved.

The Economic Uncertainty Indicator for Cyprus declined in May, driven by reduced uncertainty among both firms and households. Economic uncertainty decreased across all sectors except construction, where uncertainty remained at the relatively low level recorded in April. Moreover, uncertainty among low-income households declined markedly in May, the figures show.

Economic sentiment declined in May

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