Cyprus Mail
Cyprus

Economic sentiment recovers in September on upbeat service sector

File photo of the University of Cyprus

The economic sentiment index rose in September by 4.1 units to 115 recovering most ground lost the month before, when it plunged 7 points, the University of Cyprus said.

The improvement in economic sentiment was mainly on an improvement in business sentiment in the services sector resulting from a considerable upwards revision of turnover expectations for the three months to come, the Economic Research Centre (ERC) of the Nicosia-based university said in a statement on its website on Thursday.

“Although the climate in the services sector is at much higher levels compared with the rest, it is volatile as a result of the greater uncertainty and heterogeneity in the activities in the sector,” said the ERC. “The marginal improvement in consumer confidence had a marginal impact on the increase of the index”.

This increase in consumer confidence in September is attributed to more optimistic assessments of interviewed households about their financial situation and a reduced aversion to saving, the ERC continued.

Business confidence in retail trade remained unchanged this month as the impact of a reduced current sales volume was offset by more favourable responses about inventories and future sales, the ERC said. In construction, business sentiment was also unchanged as pessimism about the current order book offset improved assessments about future employment levels.

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