The economic climate in Cyprus remained largely unchanged in November, with the Economic Sentiment Indicator (ESI-CypERC) holding firm at levels similar to October. The latest Business and Consumer Survey from the Economics Research Centre (CypERC) at the University of Cyprus revealed that a deterioration in the key services sector was successfully neutralized by rising confidence across all other business sectors and, crucially, among consumers.
Consumer and Retail Optimism Drives Stability
Despite overall stability, the underlying figures highlight increasing optimism among households and certain trade sectors:
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Consumer Confidence Rises: The Consumer Confidence Indicator increased in November, driven by improvements across all four of its components. Consumers expressed more favorable views regarding both their recent and future financial situations and raised their expectations concerning the broader economic conditions in Cyprus. Furthermore, intentions to make major purchases strengthened.
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Retail Trade Rebounds: The Retail Trade Confidence Indicator rose, reflecting broad-based improvement. Firms reported better assessments of stock levels and offered more positive views on both recent and expected sales performance.
Business Confidence: Gains and Losses
Business confidence showed a mixed, yet net positive, picture outside of the largest sector:
| Sector | November Trend | Key Drivers |
| Services | Decrease | Driven mainly by a deterioration in firms’ assessments of their recent turnover. |
| Construction | Increase (Again) | Assessments of order book levels picked up further, and employment expectations strengthened for the second consecutive month. |
| Industry | Slight Rise | Improved views on the current levels of order books and upward revisions in production expectations, despite slightly higher finished product stock. |
Economic Uncertainty Declines Further
The overall perception of risk diminished in November. The Economic Uncertainty Indicator for Cyprus saw a further decline, which CypERC attributed to lower consumer uncertainty across all income demographics. Business uncertainty, while remaining low, held broadly stable at the levels recorded in October.
Source: Stockwatch.com.cy