CYPRUS: Economic sentiment dips on lower consumer and retail confidence

A worsening of economic confidence in services, retail trade and among consumers in May saw the University of Cyprus Economic Sentiment Indicator (ESI‐ CypERC) decline by 1.3 points from April.

On an annual basis, the index is down 1.24% to 111.4 from 112.8 in May 2018.

The Services Confidence Indicator declined in May 2019 due to a deterioration in firms’ assessments of their recent business situation, and downward revisions in demand expectations.

The Retail Trade Confidence Indicator dipped marginally as a result of more adverse assessments of recent sales and the volume of stocks.

An increase in the Construction Confidence Indicator was driven by more favourable assessments of the current level of company order books with more optimistic employment expectations.

The Industry Confidence Indicator declined due to a negative business outlook on the current level of order books and the stocks of finished products.

A decrease in the Consumer Confidence Indicator was triggered by less favourable responses regarding the financial situation of households and consumers seeking to make major purchases.