Economic sentiment fell in Cyprus

Economic sentiment in Cyprus deteriorated in July, as the Economic Sentiment Indicator (ESI-CypERC) decreased by 2.7 points compared with June.

The report, issued by the Economics Research Center of the University of Cyprus, highlights weaker business confidence in the services sector and, to a lesser extent, lower consumer confidence as the main contributors to the overall decline.

The Services Confidence Indicator decreased as all of its components deteriorated. Firms assessed their past performance (business situation and demand) less favorably and revised their demand expectations downwards.

The Retail Trade Confidence Indicator remained stable at the level reached in June. In July, an improvement in the views on recent sales was offset by a deterioration in the assessments of the current stock levels, while sales expectations stayed largely unchanged.

The increase in the Construction Confidence Indicator was thanks to more favorable assessments of the level of order books and upward revisions in employment expectations.

Furthermore, the Industry Confidence Indicator improved for the third month in a row.