Busi­ness cli­mate grad­u­ally im­prov­ing

Financial Mirror (Cyprus) - - FRONT PAGE -

The busi­ness cli­mate in Cyprus seems to be im­prov­ing, with the monthly Busi­ness and Con­sumer Sur­vey con­ducted by the Univer­sity of Cyprus Eco­nom­ics Re­search Cen­tre show­ing a 2.3 point im­prove­ment in May to 100.7, from the pre­vi­ous month. The Eco­nomic Sen­ti­ment In­dex has seen a steady in­crease since its worst read­ing of 77.7 points in May 2013 when the is­land’s eco­nomic crashed fol­low­ing the Eurogroup of Eu­ro­zone fi­nance min­is­ters’ meet­ing de­ci­sion to im­pose a bailin on un­se­cured de­posits to res­cue the Bank of Cyprus and a 10 bln euro bailout for the bank­rupt state with a ru­n­away deficit.

“The im­prove­ment is due to an im­prove­ment in the ser­vices sec­tor and con­sumer sen­ti­ment, as well as mar­ginal in­crease in the man­u­fac­tur­ing sec­tor,” the UCy sur­vey said.

“This is based on the pos­i­tive rat­ing of the econ­omy and op­ti­mistic prospects for de­mand in the next quar­ter, while the sen­ti­ment among con­sumers im­proved due to a lesser pes­simistic projections for the eco­nomic state of house­holds in the past and in the next year.” The cli­mate in the re­tail sec­tor wors­ened due to neg­a­tive projections of the cur­rent state of the econ­omy and the an­tic­i­pated con­di­tions in the next quar­ter, while the con­struc­tion sec­tor also re­mains in neg­a­tive ter­ri­tory, the sur­vey said. It added that the busi­ness cli­mate in the ser­vices sec­tor seems to be im­prov­ing faster than the other sec­tors based on the eco­nomic ac­tiv­i­ties that will help spur a re­cov­ery, it con­cluded.

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