The economic sentiment indicator rose by two units in a month in July, to 111,1, on improved confidence among companies in the services, construction, and industrial sectors, the University of Cyprus said.
The increased business confidence in services is attributed to a more favourable evaluation of the interviewed companies’ financial situation and an upward revision of demand expectations over the next three months, the Economic Research Centre (ERC) of the university said in a statement on Tuesday.
Business confidence in construction rose on an improved evaluation of future employment levels and on increased output expectations in industry, the ERC said.
On the other hand, confidence in retail trade deteriorated marginally on unfavourable responses by interviewed companies on inventories and future sales, the centre said.
Lastly, consumer confidence fell as a result of households being less optimistic about their financial situation, as well as that of the island, the situation on the labour market, and savings.