Pessimistic consumers, optimistic businessmen

According to the EU business and consumer survey, the consumer climate in Cyprus appears more optimistic. All sectors of economy, such as hotels, constructions, retail trade, industry and services, expect that the current situation will remain the same or will even improve.

Consumers are pessimistic

The Cypriot households, however, continue to be pessimistic on their financial condition, while forecasts on the country’s financial condition shows further deterioration. Cypriots believe that the cost of life has increased in the past 12 months, while they expect further increase in the next 12 months. The vast majority of the respondent households anticipate that their financial condition will remain stable in the next 12 months, while those who expect that their financial condition will deteriorate are more than those who believe the opposite.

Ray of optimism in the hotel sector

The respondent businesses support that there is an improvement in their financial condition and an increase in their turnover for a third consecutive month. Their intention to keep employment at the same level and stabilize the prices in the sector is obvious. In the future, businesses anticipate that the turnover and the employment level will remain stable. As for the price levels, most businesses believe that they will remain stable.

Strong confidence in constructions

According to the survey, construction companies stated that there has been a recovery in constructions after their sharp decline last month. The vast majority of the respondents said that the projects under constructions are regular, while others believe that they have exceeded this level. The prospects for the second consecutive month remain unchanged.

Satisfactory results from the retail trade

The vast majority of the respondents said that sales and the turnover continue to be satisfactory, while reserves and orders will remain at the same level.

Boosted confidence in services

The responds in the sector of services have showed that the current situation will remain stable or will possibly improve. The employment and the prices have remained at the same levels. Most respondents anticipate that the business climate and the future turnover will remain stable or will show a slight improvement. Future employment and prices will remain at the same levels.

Industry

The estimates for the production trends in industry are moving towards stabilization. Orders remain at satisfactory levels, while orders and sales for exports become more and more stabilized. Most respondents anticipate that the production targets will increase, while future prices will remain at the same levels. Most responds show that there is a willingness to employ new staff. The future business situation will remain stable.