The University of Cyprus Economic Research Centre said on Monday that economic sentiment in Cyprus deteriorated in July as the Economic Sentiment Indicator (ESI-CypERC) decreased by 1.7 points compared with June 2019.
According to the Economic Research Centre, the Indicator fell for the third consecutive month hitting its lowest level in twelve months.
The decrease, it said, resulted from weaker business confidence in services, retail trade, construction and industry.
The decline in the Services Confidence Indicator was driven by firms’ less favourable views on their past performance (business situation and demand) and downward revisions in demand expectations.
The decrease in the Retail Trade Confidence Indicator resulted from more negative assessments of past sales and downward revisions in sales expectations.
The small decline in the Construction Confidence Indicator was due to firms’ more negative views on the current level of their order books and downward revisions in employment expectations.
The decrease in the Industry Confidence Indicator resulted from more negative assessments of the current level of order books and downward revisions in production expectations.
The Consumer Confidence Indicator increased marginally mainly due to more optimistic assessments of the future economic conditions in Cyprus and less pessimistic responses regarding consumers’ intentions to make major purchases in the near future.