Economic sentiment in Cyprus declined slightly in January 2025, with the Economic Sentiment Indicator (ESI-CypERC) dropping by 0.6 points compared to December 2024. The decrease was driven by weaker business confidence in the construction and industrial sectors, alongside a modest decline in consumer confidence.

The services sector recorded a marginal improvement in confidence, supported by more optimistic expectations for future turnover, despite firms reporting weaker recent performance. Similarly, confidence in retail trade edged up, as businesses revised their sales expectations upwards.

In contrast, the construction sector saw a notable decline in confidence, with firms assessing their order books more negatively and lowering their employment expectations. Industrial confidence also weakened, primarily due to firms’ more pessimistic views on their stocks of finished goods.

Consumer confidence dropped slightly in January, as households reported a deterioration in their financial situation and showed less willingness to make major purchases. However, expectations regarding their future financial position and the overall economic outlook remained at the relatively high levels observed in December.

Meanwhile, economic uncertainty in Cyprus eased slightly, reflecting lower uncertainty among firms in all sectors except industry. Consumer uncertainty over future financial conditions increased in January but remained below its historical average.

The survey 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.

CNA/TNE/EPH/2025

ENDS, CYPRUS NEWS AGENCY