Economic sentiment improved in August on stronger business confidence in the service sector and, to a lesser extent, from confidence gains in retail, trade, and construction, the University of Cyprus Economic Research Centre (ERC) said on Monday.
According to the centre, the economic sentiment indicator rose by 3.6 points compared with the previous month.
The rise in the services confidence indicator was driven by firms’ more favourable views on their past performance (business situation and demand) and upward revisions in demand expectations.
The marginal increase in the retail trade confidence indicator resulted from firms’ improved assessments regarding their stock volumes, the ERC said.
The rise in construction confidence was mainly due to upward revisions in employment expectations.
Industry, on the other hand, registered a drop in confidence on less favourable assessments of the stocks of finished products and downward revisions in production expectations.
The consumer confidence indicator decreased marginally as consumers’ expectations about the future economic conditions in Cyprus were revised downwards and consumers’ intentions of making major purchases weakened, the ERC said.