The economic climate in Cyprus worsened in September

What are the performances by sector according to the data of the Economic Situation Index of the Center for Economic Research of the Univ. Cyprus

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There was a deterioration in the economic climate in September, according to the Economic Situation Index (ESI) published by the Center for Economic Research of the University of Cyprus.

As reported, in September 2023, the economic climate worsened, with the IOS decreasing by 1,6 points compared to August.

However, it is clarified that "despite fluctuations, the DOS has fluctuated above its long-term average (100 points) during the nine months of the year, indicating resilient domestic economic activity, but accompanied by uncertainty and challenges".

The fall in the IOS, it added, "came from the further weakening of consumer confidence and the decline of the business climate in all sectors, with the exception of the construction sector".

According to the Center for Economic Research of the PK, in the services sector, businesses evaluated their recent economic situation less favorably, resulting in a marginal decline in the climate in the sector.

The deterioration in retail sentiment came from more unfavorable assessments of current business conditions, such as recent sales and current inventories.

In manufacturing, sentiment eased slightly, mainly due to the downward revision of estimates for next quarter's output.

At the same time, sentiment in construction improved marginally due to more optimistic estimates for employment in the sector in the next quarter.

It is reported that consumer sentiment in September fell to the lowest point of the year.

"Compared to August, consumers were more negative about the recent and future financial situation of their households. Additionally, in September, consumers' assessments of the recent economic situation in Cyprus deteriorated significantly, while their expectations for the country's future economic situation remained at the negative levels of August," it added.

At the same time, the Economic Uncertainty Index rose in September, due to an increase in uncertainty among consumers and businesses, mainly in the services and construction sectors.

It is noted that the recording of the economic climate in Cyprus is carried out through the participation of the Economic Research Center of the University of Cyprus (KOE), in collaboration with the company RAI Consultants Ltd, in the European program Joint Harmonized European Union Program of Business and Consumer Surveys.

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

Source: KYPE