Eco­nomic sen­ti­ment im­proves on house­hold con­fi­dence

Financial Mirror (Cyprus) - - FRONT PAGE -

The eco­nomic cli­mate i mproved in April, the Eco­nom­ics Re­search Cen­tre of the Univer­sity of Cyprus said on Mon­day.

The Eco­nomic Sen­ti­ment In­di­ca­tor was by 2.1 points in April, com­pared with March, the Cen­tre said in its monthly sur­vey.

“This in­crease is due to an im­prove­ment in the eco­nomic cli­mate in all sec­tors ex­cept for ser­vices, with con­sumer con­fi­dence hav­ing the big­gest con­tri­bu­tion”.

The ERC at­tributes the im­prove­ment of the eco­nomic cli­mate among con­sumers to more op­ti­mistic es­ti­mates on the fu­ture eco­nomic sit­u­a­tion of their house­holds and of Cyprus, in gen­eral, in­clud­ing the labour mar­ket con­di­tions, as well as to a less neg­a­tive at­ti­tude to­wards sav­ings in the next twelve months.

“The im­prove­ment of cli­mate in re­tail trade is due to less neg­a­tive as­sess­ments re­gard­ing sales in the past three months and more pos­i­tive es­ti­mates for the turnover in the next three months”.

Ac­cord­ing to the ERC, ex­pec­ta­tions for a rise of em­ploy­ment in con­struc­tions in the com­ing months led to a slight im­prove­ment of the cli­mate, although it re­mains quite un­favourable com­pared to other sec­tors.

In man­u­fac­tur­ing the im­proved cli­mate is mainly re­lated to less pes­simistic as­sess­ments of cur­rent or­ders to com­pa­nies and ex­pec­ta­tions for increased pro­duc­tion in the next quar­ter.

On the other hand, the ERC said that the cli­mate in ser­vices de­clined marginally due to a small de­te­ri­o­ra­tion of as­sess­ments on the cur­rent sit­u­a­tion, while es­ti­mates of the ex­pected de­mand were more pos­i­tive. At the same time, con­fi­dence in ser­vices still re­mains at higher lev­els than in other sec­tors.

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