The economic sentiment indicator rose in January, for the fifth consecutive month, by 0.4 units to 117.4, which is a new post-June-2001 high, mainly on increased business confidence in services and construction, the University of Cyprus said.
Consumer sentiment remained unchanged for the third consecutive month, as improved expectations about labour market conditions were offset by an increase in the households reluctance to save, the Economics Research Centre (ERC) of the University of Cyprus said in an emailed statement on Friday.
The increase in business confidence in services resulted from more positive evaluation of demand by interviewed companies, the ERC said. In construction, companies revised their future employment levels upwards and were less pessimistic about current projects in progress.
The sentiment in retail trade remained unchanged, mainly on improved sale volumes that offset an increase in inventories, accompanied by an upwards revision of the sales expectations over the next months, the ERC said. Business confidence in industry remained unchanged this month, reserved expectations about production over the next three-month period offset more favourable evaluations on inventories.