Economic sentiment in June improves slightly

In June 2024, the economic sentiment in Cyprus improved slightly, as the Economic Sentiment Indicator (ESI-CypERC) increased by 0.6 points compared with May. The increase in the ESI-CypERC was driven by stronger consumer confidence and a small pickup in business confidence in services. 

According to the Economic Research Center of the University of Cyprus, the small increase in the Services Confidence Indicator resulted from firms’ improved assessments of their recent performance (business situation and turnover). 

The Retail Trade Confidence Indicator remained unchanged, as the improvement in sales expectations was offset by a deterioration in views on recent sales.

The decline in the Construction Confidence Indicator, for second month in a row, was due to worsening assessments of the level of order books, and downward revisions in employment expectations. 

The Center noted that the Industry Confidence Indicator decreased slightly mainly because of worsening views on the current level of order books.

The Consumer Confidence Indicator, it further said, rose again in June, as consumers’ intentions to make major purchases over the next months strengthened markedly. Moreover, consumers’ expectations about their financial situation and the general economic conditions in Cyprus improved further in June. 

Compared to May, consumers and firms in services reported a higher degree of difficulty in predicting their financial situation in June, leading to an increase in economic uncertainty. However, economic uncertainty in June remained below the levels registered in the first four months of 2024, it concluded.