Economic sentiment in Cyprus improved in April

In April 2022, economic sentiment in Cyprus improved as the Economic Sentiment Indicator (ESI-CypERC) increased by 2.8 points compared with March 2022, as shown by data published by the Economics Research Centre of the University of Cyprus (CypERC) and RAI Consultants Ltd.

The increase in the ESI-CypERC resulted from stronger business confidence in services, retail trade and industry, says the announcement issued by the two organisations.

The Services Confidence Indicator increased as a result of improved assessments of past performance (business situation and demand) and upward revisions in demand expectations, while the increase in the Retail Trade Confidence Indicator was driven by upward revisions in sales expectations, despite more pessimistic assessments of the current stock levels.

On the other hand, the decline in the Construction Confidence Indicator resulted from less favourable assessments of the levels of order books and downward revisions in employment expectations, data shows.

The increase in the Industry Confidence Indicator was due to more favourable views on the current levels of order books and stocks of finished products, as well as more optimistic views on future production.

The Consumer Confidence Indicator remained unchanged at the level registered in March. The deterioration in the assessments of recent household financial conditions was offset by the upward revision in expectations about the general economic conditions in the country.

In April, economic uncertainty decreased as a result of lower uncertainty in services, construction and industry as well as among consumers; uncertainty among firms in the retail trade sector increased further.

Cypriot firms’ selling price expectations rose again in April, indicating a continuation of upward price pressures.

The Surveys gather information on firms’ perceptions and expectations about different economic variables such as their turnover, production, employment and prices. The data also contain information on consumers’ perceptions and expectations about the financial condition of their households and various aspects of the economy such as consumer prices and unemployment.