Drop in con­sumer con­fi­dence pushed eco­nomic mood down

Financial Mirror (Cyprus) - - FRONT PAGE -

The Eco­nomic Sen­ti­ment In­di­ca­tor (ESI) for Fe­bru­ary com­piled by the Univer­sity of Cyprus Eco­nom­ics Re­search Cen­tre (ERC) dropped marginally due to re­duced con­fi­dence among con­sumers.

The ESI de­clined by 0.5 units to 108.6 in Fe­bru­ary from 109.1 in Jan­uary.

“The de­cline in con­sumer con­fi­dence in Fe­bru­ary, com­pared with the pre­vi­ous month, comes from more ad­verse ex­pec­ta­tions con­cern­ing the house­holds’ eco­nomic sit­u­a­tion and the pos­si­bil­ity for sav­ings in the next 12 months, as well as the less op­ti­mistic view on the eco­nomic sit­u­a­tion in the next 12 months, in­clud­ing the con­di­tions in the labour mar­ket,” the ERC said.

The ESI for the ser­vices sec­tor, retail trade and man­u­fac­tur­ing rose in Fe­bru­ary.

The im­prove­ment in retail rate is linked to im­prove­ments in the cur­rent sit­u­a­tion, as re­flected in the eval­u­a­tions of com­pa­nies on in­ven­tory, as well as less neg­a­tive views on sales in the next 12 months.

In man­u­fac­tur­ing, the rise mainly re­flects the com­pa­nies’ ex­pec­ta­tions for an in­crease in pro­duc­tion in the next 12 months.

The ESI in con­struc­tion re­mained un­changed com­pared with the neg­a­tive lev­els of Jan­uary, with the ERC point­ing out that the cli­mate is less neg­a­tive com­pared with the ten first months of 2015.

The ESI in con­struc­tion climbed to -28 units in Jan­uary and Fe­bru­ary from -43 units in Novem­ber 2015 and -30 units in De­cem­ber.

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