Economic sentiment in Cyprus improved slightly this May as the Economic Sentiment Indicator (ESI-CypERC) increased by 1.1 points compared with April 2022, according to the results of the Business and Consumer Survey of the Economics Research Center of the University of Cyprus. The increase in the ESI-CypERC resulted from stronger business confidence in services, the survey says.
According to the survey data, the increase in the Services Confidence Indicator was driven by further improvements in the assessments of past performance (business situation and demand) and upward revisions in demand expectations.
The Retail Trade Confidence Indicator remained unchanged as the improved assessments of recent sales and current stock levels were offset by a deterioration in sales expectations.
The Construction Confidence Indicator stayed unchanged as firms’ assessments of the level of order books and employment expectations remained broadly stable, while the decrease in the Industry Confidence Indicator was driven by a deterioration in the assessments of current levels of order books and pessimistic views on future production, it adds.
The Consumer Confidence Indicator decreased, mainly because of downward revisions in consumers’ expectations about their financial conditions and the general economic conditions in the country.
According to the survey, in May, economic uncertainty declined in services, construction and retail trade, as uncertainty rose among firms in the industry and among households.
Firms’ selling price expectations, as well as consumers’ price expectations, remained at extremely high levels, indicating the continuation of upward price pressures.