The economic sentiment in Cyprus deteriorated further in April amid the fallout of the coronavirus crisis, suggesting a grim outlook for the economy, the University of Cyprus Economics Research Centre said on Monday.
According to the centre, the economic sentiment indicator dropped by 21.9 points against the previous month, a historic reduction.
In April ESI-CypERC declined below its long-run average, suggesting a grim outlook for economic activity.
The decrease in ESI-CypERC was driven by worsening confidence in services, retail trade and industry, as well as weakening consumer confidence.
The decrease in the Services Confidence Indicator resulted from firms’ less favourable views than previously, as well as from major downward revisions in demand expectations.
The decline in the Retail Trade Confidence Indicator was due to firms’ worsening assessments of their past sales and more pessimistic sales expectations.
The Construction Confidence Indicator remained unchanged at the negative level registered in March, as more optimistic employment expectations were offset by worsening assessments of the level of order books.
The Industry Confidence Indicator dropped as a result of a deterioration in firms’ assessments of the current levels of their order books and stocks of finished products, as well as downward revisions in production expectations.
The decrease in Consumer Confidence Indicator was driven by downward revisions in consumer expectations about their financial conditions and the economic conditions in Cyprus, as well as by weaker intentions to make major purchases.