25/02/2015 15:01
The economic sentiment improved in February 2015, according to new figures of the Economic Research Centre of the University of Cyprus.
The economic sentiment improved by 0.9 points in the second month of the year, with the economic sentiment indicator (ESI) amounting to 103.9 points from 103 points in January.
According to ERC, the indicator is moving slightly above its long-term average (ie 100 units) since May 2014, while the real economy is still in recession.
The increase in February, compared with January, is attributable to the improvement of the economic sentiment in services and manufacturing.
In the services sector, the business climate rose due to the improvement of the current situation and expectations.
Compared to January, more businesses evaluated positively their financial position in the last quarter while more declared that their staff has increased over the past three months.
On the other hand, fewer companies compared with the previous month stated that the demand in the last quarter has increased. The expectations of businesses for demand for their services in the next quarter have improved significantly compared to January.
Also in February more companies than in January stated they are planning increases in employment and reductions in prices over the next three months.
In manufacturing, the business climate has improved due to improvements in the current situation.
The economic climate in constructions declined due to pessimistic estimates on employment prospects in the sector while the business climate in retail trade remained at the same negative level as in the previous month.
The economic confidence among consumers dropped as a result of the significant deterioration of their estimates for the economic situation in Cyprus in the next 12 months and to a lesser extent, due to the further weakening of their intentions to save.
The economic sentiment improved by 0.9 points in the second month of the year, with the economic sentiment indicator (ESI) amounting to 103.9 points from 103 points in January.
According to ERC, the indicator is moving slightly above its long-term average (ie 100 units) since May 2014, while the real economy is still in recession.The increase in February, compared with January, is attributable to the improvement of the economic sentiment in services and manufacturing.
In the services sector, the business climate rose due to the improvement of the current situation and expectations.
Compared to January, more businesses evaluated positively their financial position in the last quarter while more declared that their staff has increased over the past three months.
On the other hand, fewer companies compared with the previous month stated that the demand in the last quarter has increased. The expectations of businesses for demand for their services in the next quarter have improved significantly compared to January.
Also in February more companies than in January stated they are planning increases in employment and reductions in prices over the next three months.
In manufacturing, the business climate has improved due to improvements in the current situation.
The economic climate in constructions declined due to pessimistic estimates on employment prospects in the sector while the business climate in retail trade remained at the same negative level as in the previous month.
The economic confidence among consumers dropped as a result of the significant deterioration of their estimates for the economic situation in Cyprus in the next 12 months and to a lesser extent, due to the further weakening of their intentions to save.
Related Articles
