The economic sentiment index rose by 3.3 points in January compared to December, to 122.2, marginally failing November’s all-time high, the University of Cyprus said.
The improvement in economic sentiment was mainly on improved business confidence in services, the Economic Research Centre (ERC) of the university said on its website on Tuesday. Interviewed companies in the services sector said they were more upbeat this month about the evaluation of their financial situation and demand and revised upwards their turnover expectations over the next three-month period.
Business confidence in construction improved marginally in January mainly on more optimistic expectations about employment in the sector over the next three months, the ERC said. Confidence in the industrial sector rose as a result of less unfavourable evaluations of current orders and an upwards revision of output expectations over the next three months.
Consumer confidence also improved slightly as interviewed households gave more favourable answers about their future financial situation as well as that of the country, the ERC added. Households also expected labour market conditions to improve over the next 12 months.
Lastly, confidence among retail companies dropped this month citing a decline in sales and unfavourable evaluations of inventories, the ERC said.