Economic sentiment in Cyprus saw improvement in December 2024, with the Economic Sentiment Indicator (ESI-CypERC) of the University of Cyprus Economics Research Centre rising by one point compared to November 2024. This uplift was primarily attributed to increased consumer confidence and, to a lesser degree, enhanced business confidence within the industrial sector.
Sectoral Insights
The Services Confidence Indicator remained unchanged in December. Lower demand expectations were balanced by more positive evaluations of past business performance.
The Retail Trade Confidence Indicator also stayed stable. While perceptions of recent sales and stock levels declined, these were offset by a more optimistic outlook on future sales.
The Construction Confidence Indicator experienced a slight drop for the second consecutive month. This decline stemmed from reduced employment expectations within the sector.
Improvements in the Industry Confidence Indicator were driven by better evaluations of firms’ current order books and upward adjustments to production expectations.
Consumer Confidence
Consumer confidence strengthened for the second month in a row in December. This improvement was fueled by more positive views on both recent and future personal financial situations and heightened optimism regarding the overall economic conditions in Cyprus.
Economic Uncertainty
The Economic Uncertainty Indicator rose in December, reflecting increased uncertainty among businesses in the services and retail trade sectors. However, uncertainty within the services sector remained relatively low. On the other hand, uncertainty among construction firms and consumers declined significantly during the month.
Source: Stockwatch Cyprus