Cyprus consumer confidence improved in May and June.
It was mainly driven by upward revisions in consumers’ expectations about their financial condition and economic conditions in Cyprus, according to the Economic Sentiment Indicator (ESI-CypERC) from the Economics Research Centre at the University of Cyprus.
In June, in Cyprus the Economic Sentiment Indicator (ESI) increased to 79.7 points in June up from 76.8 in May and the Economic Expectations Indicator to 98.2 up from 96.9 — both indicators are published by the Directorate General for Economic and Financial Affairs of the European Commission.
According to DG ECFIN, in the euro area, the ESI’s recovery was propelled by significant increases in confidence across all surveyed business sectors (i.e. industry, services, retail trade, construction) and among consumers. This contrasts with last month which had only seen industry and consumer confidence significantly improve. The largest gain, compensating for about a third of the combined losses over March and April, was registered in retail trade. From a country-perspective, the ESI recovered in all of the largest euro-area economies, namely in France (+9.4), the Netherlands (+8.3), Spain and Italy (both +8.2), as well as Germany (+6.6).
Industry confidence continued May’s forceful recovery (+5.8), driven by another hefty improvement in production expectations, which are now almost back to their February level. A sharp rebound in the level of past production indicates that the recovery of the sector heralded by last month’s heightened production expectations started materialising.
Business confidence decreased in May and June, however, driven by additional confidence losses in services and retail trade, and to a smaller extent, by a weakening of confidence in construction. The decline in May is mainly related to more negative assessments of the recent economic conditions than to worsening expectations, the study shows.