Eco­nomic sen­ti­ment im­proves

Financial Mirror (Cyprus) - - FRONT PAGE -

Eco­nomic sen­ti­ment im­proved in Oc­to­ber with the Eco­nomic Sen­ti­ment In­di­ca­tor (ESI) ris­ing by 0.7 points, ac­cord­ing to the Eco­nom­ics and Re­search Cen­tre of the Univer­sity of Cyprus (CypERC).

The monthly sur­vey said that this in­crease is due to the im­prove­ment of the busi­ness cli­mate in manufacturing and a grow­ing con­sumer con­fi­dence.

In manufacturing, the less neg­a­tive cli­mate in Oc­to­ber was re­lated to the less pes­simistic eval­u­a­tions of the cur­rent or­ders by en­ter­prises and their cur­rent re­serves. The strength­en­ing of con­sumer con­fi­dence is linked to the more favourable as­sess­ments for the prospects of Cyprus econ­omy and the labour mar­ket in the next 12 months and the less neg­a­tive con­sumer at­ti­tudes to­wards sav­ings over the next year.

The ESI de­cline in ser­vices de­rives from the most pes­simistic as­sess­ments of the eco­nomic sit­u­a­tion and busi­ness de­mand in the last quar­ter.

The de­clin­ing sales in the last three months and the less favourable es­ti­mates for the ac­tiv­ity in the next quar­ter led to a more neg­a­tive cli­mate in re­tail trade. In con­struc­tion, the more neg­a­tive es­ti­mates for the on­go­ing projects in line with the in­ten­tion of en­ter­prises to re­duce staff in the next quar­ter led to a more neg­a­tive cli­mate in Oc­to­ber.

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