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Economic sentiment deteriorated this September

28/09/2021 09:25

In September 2021, economic sentiment in Cyprus deteriorated as the Economic Sentiment Indicator (ESI-CypERC) decreased by 1.5 points compared with August 2021, according to figures published Monday by the Economics Research Centre (ERC) of University of Cyprus.

The decrease in the ESI-CypERC resulted from weakened business confidence in services and, to a smaller extend, from a fall in construction confidence. Data show that  the decrease in the Services Confidence Indicator resulted from firms’ less favourable views on their past business situation and past demand, despite improved demand expectations.

Moreover, according to the ERC, the Retail Trade Confidence Indicator increased marginally because of more favourable assessments of past sales, despite downward revisionsin sales expectations.

The Construction Confidence Indicator deteriorated slightly as a result of downward revisions in employment expectations, despite more favourable assessments of the current levels of order books.

The marginal increase in the Industry Confidence Indicator was driven by the improvement in firms’ views on the current levels of order books.

As the  Economics Research Centre notes, the Consumer Confidence Indicator rose in September, registering improvements for the second month in a row. Consumers revised their expectations about the future economic conditions in Cyprus upwards; also, consumers expressed stronger intentions for making major purchases.