The economic sentiment indicator dropped in February to 108.6 units from 109.8 the month before, which was the highest in more than seven years, on a drop in consumer confidence, the Economic Research Centre said.
The drop in consumer confidence in February resulted from less favourable evaluations of households’ financial situation and expectation of saving in the coming 12 months as well as from worse expectations for Cyprus’s economy and labour market in the coming 12 months, the ERC, a division of the University of Cyprus said in an emailed statement on Wednesday.
Sentiment in services, retail and manufacturing improved in February, while it remained unchanged in construction, the ERC said.
“Improved business confidence in services is on more favourable evaluation of the companies’ financial situation and demand in the past quarter,” the ERC said. “The improvement in retail is related with some improvement in the (evaluation of) the current situation, as reflected in the companies’ evaluation of stock and less negative expectations about sales in the next three months”.
The improved sentiment in manufacturing is related to increased output expectations of interviewed companies in next three months, the ERC said.