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Tag: consumer confidence

  • Economic Sentiment in Cyprus Sees Positive Shift

    Economic Sentiment in Cyprus Sees Positive Shift

    Economic sentiment in Cyprus recovered in October, with the Economic Sentiment Indicator (ESI-CypERC) rising by 2.0 points. This increase follows a downturn in September, when the indicator fell to 102.1 from 103.7 in August.

    Photo: financialmirror.com

    • Similarly, the Construction Confidence Indicator also rose, buoyed by better order book levels and a positive shift in employment expectations among firms in this sector.
    • The Industry Confidence Indicator experienced a small decrease, primarily due to less favourable assessments regarding current order books and lowered production expectations.
    • Furthermore, expectations regarding the overall economic conditions in Cyprus have also deteriorated among consumers, reflecting a more cautious outlook.
    • The report from the University of Cyprus highlights these mixed signals in economic sentiment, indicating a complex landscape as the nation navigates its recovery.

    Economic sentiment: Business Confidence on the Rise

    The Economics Research Centre of the University of Cyprus attributes the uptick in overall economic sentiment to a rebound in business confidence, particularly within the services and construction sectors. These areas had previously experienced significant declines over the last two months.

    Improvements in Services and Construction

    In October, the Services Confidence Indicator saw a notable increase, reversing the downward trend of the last two months. This improvement was driven by enhanced assessments of the recent business situation and more optimistic views on past and expected turnover.

    Similarly, the Construction Confidence Indicator also rose, buoyed by better order book levels and a positive shift in employment expectations among firms in this sector.

    Retail Trade and Industry Indicators Shift

    <pConversely, the Retail Trade Confidence Indicator recorded a decline. This drop was attributed to deteriorating views on recent sales and stock levels, alongside further downward revisions in sales expectations.

    The Industry Confidence Indicator experienced a small decrease, primarily due to less favourable assessments regarding current order books and lowered production expectations.

    Consumer Sentiment Takes a Hit

    While business confidence has improved, the Consumer Confidence Indicator saw a decline in October, reversing the positive trend of the previous two months. Consumers reported a worsening assessment of their financial situations and a weaker intent to make major purchases.

    Furthermore, expectations regarding the overall economic conditions in Cyprus have also deteriorated among consumers, reflecting a more cautious outlook.

    Economic Uncertainty Eases

    <pOn a more positive note, the Economic Uncertainty Indicator decreased to 11.7 points in October, down from 15.8 in September. This decline suggests a reduction in business uncertainty across most sectors, with the exception of industry, where uncertainty rose slightly. Although consumer uncertainty did increase, it remains relatively low across all income groups.

    The report from the University of Cyprus highlights these mixed signals in economic sentiment, indicating a complex landscape as the nation navigates its recovery.

  • Declining Economic Sentiment in Cyprus Driven by Services and Construction Sectors

    Declining Economic Sentiment in Cyprus Driven by Services and Construction Sectors

    Economic sentiment in Cyprus has taken a downturn for the second consecutive month, with the Economic Sentiment Indicator (ESI-CypERC) dropping by 1.6 points in September to reach 102.1, down from 103.7 in August.

    Photo: financialmirror.com

    This decline is attributed to a noticeable weakening in business confidence, particularly within the services and construction sectors. According to the Economics Research Centre at the University of Cyprus, the fall in the Services Confidence Indicator reflects a decline in firms’ assessments of their recent performance, despite a slight improvement in turnover expectations.

    Economic sentiment: Woes in the Services Sector

    The Services Confidence Indicator has now fallen for two months running. This trend is largely due to negative evaluations by firms regarding their current business situation and turnover, which contrasts with the more optimistic outlook some firms have for future turnover.

    Challenges in Retail Trade

    In the realm of retail, a minor decrease in the Retail Trade Confidence Indicator can be observed. This reduction is primarily the result of downward revisions in sales expectations, signalling challenges for businesses in this sector.

    Construction Sector Struggles

    The construction sector also faces difficulties, with the Construction Confidence Indicator declining for the second month in a row. Deteriorating perceptions regarding order book levels and reduced expectations for employment are key factors contributing to this decline.

    Industry Confidence Shows Improvement

    In contrast to these findings, the Industry Confidence Indicator registered an increase, reflecting improved assessments of current order book levels and stock of finished products. This positive shift has been accompanied by upward revisions in production expectations, highlighting a mixed picture in Cyprus’s economic landscape.

    Consumer Confidence and Economic Uncertainty

    On the consumer front, the Consumer Confidence Indicator saw a slight uptick in September, driven by more optimistic views regarding the general economic conditions in Cyprus. However, this optimism is tempered by deteriorating expectations concerning personal financial situations and weakened intentions to make significant purchases.

    Additionally, the Economic Uncertainty Indicator for Cyprus rose sharply in September to 15.8 points, up from 11.0 in August. This rise indicates an increase in business uncertainty, particularly within the services sector. Conversely, uncertainties in other sectors and among consumers have shown a decline, suggesting a complex economic narrative.