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Economic sentiment deteriorated in July

27/07/2021 13:50

In July 2021, economic sentiment in Cyprus deteriorated as the Economic Sentiment Indicator (ESI-CypERC) decreased by 4.7 points compared with June 2021.

According to the Economics  Research Center of the University of Cyprus, the decrease in the ESI-CypERC mainly resulted from weaker business confidence in services and lower consumer confidence.

The decrease in the Services Confidence Indicator was driven by firms’ less favourable views on past demand and  downward revisions in demand expectations.

It adds that the Retail Trade Confidence Indicator decreased marginally as a result of downward revisions in sales expectations.

The marginal increase in the Construction Confidence Indicator was due to upward revisions in employment expectations.

The Industry Confidence Indicator rose marginally mainly because of upward revisions in production expectations.

The decline in the Consumer Confidence Indicator was largely driven by a deterioration in the forward-looking components of the Indicator. In July, consumers revised their expectations about their financial conditions and the economic conditions in Cyprus downwards; moreover, consumers’ intentions to make major purchases weakened, it notes.

In July, uncertainty among firms in all sectors, as well as among consumers increased, it concludes.