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Economic sentiment deteriorated in November

29/11/2021 09:02

Economic sentiment in Cyprus deteriorated as the Economic Sentiment Indicator (ESI-CypERC) decreased by 1 point compared with October 2021, the Economics Research Centre of the University of Cyprus reported on Friday.

The decrease, it said, was driven by the deterioration in construction and services confidence.

“The marginal decrease in the Services Confidence Indicator resulted from downward revisions in demand expectations, despite improved assessments of past performance (business situation and demand),” the ERC said.

“The Retail Trade Confidence Indicator remained unchanged as its components (assessments of past sales, views on current stock levels, sales expectations) stayed broadly stable in November,” it added.

According to the ERC, the decline in the Construction Confidence Indicator was mainly driven by a deterioration in firms’ assessments of the current levels of order books.

The Industry Confidence Indicator stayed unchanged from October, as the upward revisions in production expectations were offset by a deterioration in firms’ views on the current levels of finished goods stocks, it noted.

The ERC also reported that the Consumer Confidence Indicator increased marginally in November, mainly because of consumers’ stronger intentions to make big purchases in the near future.

It said that in November, uncertainty among firms in all sectors rose. At the same time, firms’ selling price expectations, as well as consumers’ expectations about price trends reached very high levels, pointing to a continuation of upward pressures, the ERC said.