Cyprus economic sentiment and consumer climate worsened in April

The Economic Sentiment Index (ESI) for Cyprus decreased by 2.8 points in April 2023, compared to the previous month, indicating a worsening of economic sentiment, according to a report by the Centre for Economic Research of the University of Cyprus.

The report revealed that along with the ESI, the consumer climate in Cyprus also recorded a significant deterioration.

According to the report, the decline in the ESI was mainly due to a weakening of the business climate in the services and manufacturing sectors, as well as the decline in consumer confidence.

The report also noted that the sentiment in the services sector worsened due to pessimistic estimates in terms of the turnover expected during the coming quarter.

Meanwhile, manufacturing sentiment worsened slightly as a result of more negative assessments of the current situation.

On a positive note, sentiment in the construction sector picked up due to more favourable assessments of ongoing projects and optimistic estimates of employment in the industry during the next quarter. Similarly, retail sentiment strengthened slightly, despite a downward revision to next quarter’s sales estimates.

The report also highlighted that the consumer climate registered a significant deterioration in April, with consumers revising down their expectations about the future financial situation of their households and the country in general.

In addition, consumer spending intentions weakened considerably in major markets in April.

Moreover, the Economic Uncertainty Index rose in April due to an increase in uncertainty in the services sector. However, uncertainty eased in construction and retail trade, while remaining at March levels in manufacturing. Uncertainty among consumers also fell for the second month in a row, reaching a three-year low.