CYPRUS: Economic sentiment slightly up due to retail sales and consumer optimism

In August economic sentiment in Cyprus edged up slightly due to improved retail sales and consumer confidence, according to the University of Cyprus Economic Research Centre.

The Economic Sentiment Indicator (ESI-CypERC) increased by 0.5points in August to 111.6 compared to 111.1 registered in July.

Economists said the increase was driven by stronger confidence in retail trade, industry and among consumers.

The Services Confidence Indicator declined due to companies having less optimistic views on their past business situation and past demand.

The Retail Trade Confidence Indicator rose as a result of improved assessments of past sales and

stock volumes, and upward revisions in sales expectations.

The Construction Confidence Indicator remained unchanged as the improvement in firms’ views on

the current level of order books was offset by the downward revision in employment expectations.

An increase in the Industry Confidence Indicator was driven by improved assessments of the level of

order books, and upward revisions in production expectations.

The Consumer Confidence Indicator increased because of consumers’ improved assessments of all

components of the Indicator.

These include households’ future financial conditions, future economic conditions in Cyprus, future labour market prospects and savings likelihood.