Economic sentiment indicator in Cyprus declines but remains at historic high levels
The Economic Sentiment Indicator in Cyprus deteriorated as the Economic Sentiment Indicator (ESI-CypERC) decreased in December 2017 by 3.4 points compared with November 2017 declining to 118.9 units.
However, the ESI remains at historic high levels, according to the date of the University of Cyprus’ Economic Research Centre (ERC).
The decline resulted from the worsening of business confidence in services and the construction industry, and the weakening of consumer confidence, while the services confidence indicator declined due to firms’ less optimistic views on recent business situation and downward revisions in turnover expectations, the ERC said.
On the contrary, the Retail Trade Confidence Indicator rose as a result of improved assessments of recent sales and current stock volumes, and upward revisions in sales expectations.
The Construction Confidence Indicator decreased marginally due to downward revisions in employment expectations, whereas the Industry Confidence Indicator remained unchanged as firms’ more pessimistic assessments of current orders and future production plans were offset by improved assessments of their stocks of finished products.
According to the ERC, the Consumer Confidence Indicator decreased as a result of consumers’ less favourable responses regarding their future financial conditions and the future economic conditions in Cyprus, including labour market conditions. Source: CNA