Cyprus' economic mood sours in February

In February 2024, economic sentiment in Cyprus witnessed a decline, with the Economic Sentiment Indicator (ESI-CypERC) dropping by 2.1 points compared to January, according to the University of Cyprus Economics Research Center.

The decrease was attributed to lower confidence among consumers and weakened business confidence in all sectors except construction. The Services Confidence Indicator saw a decrease, reflecting deteriorating assessments of past and expected turnover by firms. The Retail Trade Confidence Indicator declined due to downward revisions in sales expectations. However, the Construction Confidence Indicator increased, driven by improved views on current order book levels and enhanced employment expectations.

The Industry Confidence Indicator experienced a marginal decline, primarily due to downward revisions in production expectations. The Consumer Confidence Indicator dropped as three of its four components worsened, reflecting deteriorating views on recent and future financial conditions and economic conditions in Cyprus.

Additionally, economic uncertainty in Cyprus decreased for the second consecutive month in February, attributed to lower uncertainty levels among firms, particularly in construction, and consumers. The research is part of the Joint Harmonised European Union Programme of Business and Consumer Surveys, with funding from the European Union, the Ministry of Finance, and the University of Cyprus.

[Source: CNA]