Economic sentiment in Cyprus improved in October, the Economics Research Centre of the University of Cyprus said Wednesday, but consumers were pessimistic over their future economic conditions.

“In October 2021, economic sentiment in Cyprus improved as the Economic Sentiment Indicator (ESI- CypERC) increased by 2.5 points compared with September 2021”, the ERC said.

“The increase in the indicator was driven by confidence gains in all sectors, despite the deterioration in consumer confidence”, it was added.   

The increase in the Services Confidence Indicator resulted from improved assessments of past performance (business situation and demand) and upward revisions in demand expectations.

The Retail Trade Confidence Indicator increased because of improved assessments of past sales and more favourable views on the current stock levels. Sales expectations remained stable.

The Construction Confidence Indicator improved slightly as a result of more favourable assessments of the current levels of order books and upward revisions in employment expectations.

The marginal increase in the Industry Confidence Indicator was mainly driven by improved views on the current levels of order books.

The Consumer Confidence Indicator registered a small decline.  In October, consumers were more pessimistic about their future financial conditions and future economic conditions in Cyprus. Moreover, in October consumers’ intentions to make major purchases weakened.