The economic sentiment in Cyprus declined in December due to weaker business confidence in services and industry.
The Economic Sentiment Indicator compiled by the University of Cyprus’ Economics Research Centre (ERC) dropped by 1.8 points to 109.2 points in December compared with 111.0 points the previous month.
“The decrease resulted from weaker business confidence among firms in services and industry,” the ERC said.
The deterioration in the Services Confidence Indicator was driven by firms’ less favourable views on their past performance (business situation and demand) and downward revisions in demand expectations.
The marginal increase in the Retail Trade Confidence Indicator was driven by improved assessments of past sales and upward revisions in sales expectations, the ERC added, noting that the Construction Confidence Indicator improved due to firms’ more favourable views on the current levels of their order books.
The Industry Confidence Indicator decreased as a result of firms’ more negative assessments of the current levels of their order books.
Furthermore, the Consumer Confidence Indicator remained unchanged as upward revisions in consumers’ expectations regarding their financial conditions and the economic conditions in the country were offset by consumers’ weaker intentions to make major purchases, the ERC added.