In June 2021, economic sentiment in Cyprus improved as the Economic Sentiment Indicator (ESI-CypERC) increased by 6.2 points compared with May 2021.
According to a press release by Economic Research Center of the University of Cyprus, the increase in the ESI-CypERC was mainly driven by confidence gains in services and among consumers.
The Services Confidence Indicator increased significantly for the fourth consecutive month in June. The increase resulted from improved assessments of past performance, both business situation and demand, and upward revisions in demand expectations.
The small increase in the Retail Trade Confidence Indicator was largely due to upward revisions in sales expectations.
The small decrease in the Construction Confidence Indicator resulted from downward revisions in employment expectations.
The Industry Confidence Indicator increased marginally because of upward revisions in production expectations.
The Consumer Confidence Indicator rose to its highest level since the start of the pandemic in Cyprus. In June, assessments of recent and future household financial conditions, as well as expectations about economic conditions in Cyprus improved, while intentions to make major purchases remained roughly unchanged.