Economic sentiment declines for third month in a row

Economic Sentiment declined in March for the third consecutive month mainly due to the deterioration in the business confidence in the services sector, the University of Cyprus’ Economic Research Centre (ERC) has said.
 
The Economic Sentiment Indicator (ESI) declined by 2.0 points to 110.3 points in March compared to 112.3 the previous month.
 
“The decrease was mainly driven by a decline in business confidence in the services sector,” the ERC said.

According to the ERC, 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.
 
Furthermore, the marginal increase in the Retail Trade Confidence Indicator was due to upward revisions in sales expectations.
 
The Construction Confidence Indicator increased as a result of firms’ improved assessments of the current level of their order books, the ERC added.
According to the ERC, the more favourable assessments on stock of finished products resulted in increased Industry Confidence Indicator.
 
The Consumer Confidence Indicator declined marginally as consumers’ assessments of the future economic conditions in Cyprus deteriorated, and their intentions to make major purchases weakened.