Economic Sentiment in Cyprus declined in May

In May 2016, economic sentiment in Cyprus deteriorated as the Economic Sentiment Indicator (ESI-CypERC) declined by 2.4 points compared to April 2016 as a result of the worsening of business confidence in services and construction, and the weakening of consumer confidence. Research conducted by “The Economics Research Centre” (CypERC) of the University of Cyprus.

Summary

  1. In May 2016, economic sentiment in Cyprus deteriorated as the Economic Sentiment Indicator (ESI – CypERC) declined by 2.4 points compared to April 2016 as a result of the worsening of business confidence in services and construction, and the weakening of consumer confidence. 
  2. The Services Confidence Indicator fell due to firms’ less positive assessments of past business situation and demand as well as to more pessimistic views regarding firms’ turnover over the next three months. 
  3. The Construction Confidence Indicator declined because of more negative assessments of order books and employment plans. 
  4. The Consumer Confidence Indicator deteriorated as a result of (i) consumers’ more pessimistic views regarding the future financial situation of their household and the general economic situation in Cyprus, and (ii) a decline in the likelihood of saving over the next 12 months. 
  5. The Retail Trade and Industry Confidence Indicators remained unchanged as the improvement in the assessments of recent trends was offset by a deterioration of firms’ expectations.

CypERC is an independent, non-profit organisation with the aim of promoting scientific knowledge in economics, especially in matters concerning Cyprus.

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