Business and consumer sentiment on the rise
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.