CYPRUS: Economic sentiment declines in October to three-month low

Cyprus’ Economic Sentiment Indicator declined by 2.9 points in October from September due to confidence deterioration in most sectors, the University of Cyprus Economic Research Centre (ERC) said.

The decrease resulted mainly from a weakening of business confidence among firms in services and a deterioration of economic confidence among consumers 

According to the ERC, the ESI in October declined to 109.8 points, its lowest since July when it was 107.8 and a year ago it was a higher 110.7.

The decline in the Services Confidence Indicator was driven by firms having less favourable views on their past performance (business situation and demand) and downward revisions in demand expectations.

The marginal decrease in the Retail Trade Confidence Indicator resulted from downward revisions in sales expectations.

The Construction Confidence Indicator remained unchanged at the marginally negative level registered in September, as the improved assessments of the level of order books were offset by downward revisions in employment expectations.

 The increase in the Industry Confidence Indicator was mainly due to upward revisions in production expectations.

The deterioration in the Consumer Confidence Indicator was driven by downward revisions in expectations regarding their financial conditions and the economic conditions in Cyprus as well as by weaker intentions to make major purchases.