The economic sentiment in Cyprus improved in September 2022 as the Economic Sentiment Indicator (ESI-CypERC) increased by 4.5 points compared with August 2022, according to the results of a survey by the Economics Research Centre of the University of Cyprus (CypERC).
As it is noted, the increase in the ESI-CypERC was driven by confidence gains in all sectors and among consumers.
The increase in the Services Confidence Indicator resulted from firms’ improved assessments of their past performance (business situation and demand) as well as from upward revisions in turnover expectations.
Moreover, according to the CypERC the small improvement in the Retail Trade Confidence Indicator was mainly driven by upward revisions in sales expectations.
The Construction Confidence Indicator rose mainly as a result of more favourable assessments of the current levels of order books.
The Industry Confidence Indicator increased because of improved views on the current levels of order books and stocks of finished products, despite downward revisions in production expectations, the survey showed.
The increase in Consumer Confidence Indicator resulted from improvements in all of its components. In September, consumers assessed their recent financial conditions more favourably, and revised their expectations about their financial conditions and the economic conditions in Cyprus upwards. Moreover, consumers’ intentions to make major purchases picked up in September.
As it is noted, economic uncertainty in Cyprus rose in September because of the higher uncertainty levels registered among consumers; uncertainty among firms in construction, retail trade and industry decreased.