Business and con­sumer sen­ti­ment on the rise

Financial Mirror (Cyprus) - - FRONT PAGE -

The monthly Eco­nomic Sen­ti­ment In­di­ca­tor com­piled by the Eco­nomics and Re­search Cen­tre of the Univer­sity of Cyprus saw an im­prove­ment of 2.1 points to 105.2 com­pared to the pre­vi­ous month’s survey. The year-ear­lier In­dex was at an all-time low of 88.8 points, fol­low­ing the March 2013 decision by the Eurogroup of Eu­ro­zone fi­nance min­is­ters to im­pose a bail-in of de­posits and a harsh aus­ter­ity pro­gramme as part of a 10 bln euro bailout.

The UCy survey said the ESI had im­proved in De­cem­ber “due to an im­prove­ment in cli­mate of the ser­vices sec­tor, the re­tail sec­tor and man­u­fac­tur­ing, as well as (an im­prove­ment) among con­sumers.”

The im­prove­ment of sen­ti­ment in the ser­vices sec­tor arose mainly from an im­prove­ment in the cur­rent state of busi­nesses and pro­jec­tions for an in­crease in turnover over the next three months, the UCy survey said.

In the re­tail sec­tor, the business and con­sumer con­fi­dence was “less neg­a­tive” due to the favourable re­sponses on cur­rent and an­tic­i­pated sales. In man­u­fac­tur­ing, the cli­mate im­prove­ment de­rives from the “less neg­a­tive forecasts” for cur­rent or­ders and op­ti­mistic as­sess­ment in out­put over the next three months. The im­prove­ment in sen­ti­ment among con­sumers “is the re­sult of ex­pec­ta­tions of im­prove­ment in the eco­nomic sit­u­a­tion of house­holds in Cyprus over the next 12 months,” the survey added.

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