The economic sentiment deteriorated further in May as confidence worsened in the services and retail sectors, the University of Cyprus economics research centre said on Tuesday.
Compared with the previous month, the economic sentiment indicator dropped by 4.1 points in May.
The decrease was driven by additional confidence losses in the services and retail trade, and to a smaller extent, by weakening confidence in construction.
The decline is mainly related to more negative assessments of recent economic conditions than to worsening expectations.
The decrease in the services confidence indicator resulted from firms’ less favourable views on their past business situation and past demand.
The decline in the retail trade confidence indicator was due to firms’ more negative evaluations of their past sales and more adverse views on their stock levels.
The construction confidence indicator decreased as a result of more negative assessments of the level of order books and downward revisions in employment expectations.
The industry confidence indicator rose due to less adverse views on the current levels of stocks of finished products and upward revisions in production expectations.
A rise in the consumer confidence indicator was mainly driven by upward revisions in consumers’ expectations about their financial conditions and the economic conditions in Cyprus.
New survey data, which aim at measuring economic uncertainty, show that the highest levels of uncertainty in May were registered in the sectors of construction and industry.
The largest increase in the level of uncertainty, compared with 2019, was recorded in the services sector.