Cyprus economic sentiment improves in June

The economic climate in Cyprus improved slightly in June, with the Economic Sentiment Indicator (ESI) rising by 0.6 points compared to May 2024, according to a report released this week by the Economics Research Centre of the University of Cyprus (CypERC).

The report noted that the increase in the ESI was driven by strengthened consumer sentiment and, to a lesser extent, improved business sentiment in the services sector.

Moreover, the centre reported that the limited improvement in the services sector was due to more positive assessments of the current business situation.

However, business expectations for turnover in the next quarter were more pessimistic in June.

In the construction sector, sentiment weakened further due to more negative responses regarding ongoing projects and downward revisions of employment expectations.

In addition, business sentiment in retail trade and manufacturing in June showed no significant change compared to May.

Furthermore, in June, consumer sentiment rose as consumers’ intentions to make major purchases strengthened.

Meanwhile, consumers’ expectations for the future economic situation of their households and the country were revised upwards.

Despite these positive developments, households and businesses in the services sector faced greater difficulty in predicting their future economic situation in June compared to May, indicating an increase in uncertainty.

As a result, the Economic Uncertainty Index rose, although it remains below the levels recorded in the first four months of 2024.

It should be noted that the economic climate survey in Cyprus is conducted by the Economics Research Centre of the University of Cyprus (CypERC) in collaboration with RAI Consultants Ltd, as part of the Joint Harmonised European Union Programme of Business and Consumer Surveys.

The project is funded by the European Union, the Ministry of Finance, and the University of Cyprus.