The Economic Sentiment Index (ESI) for Cyprus dropped by 1.3 points in November 2024 compared to October, according to the University of Cyprus’ Economics Research Centre. Despite the decline, the index remains at a relatively high level, indicating continued favorable conditions for the Cypriot economy in the coming months.

The ESI decrease is attributed to a weakening of business confidence in the services, retail trade, and construction sectors. However, the report notes that despite the decline in November, the services sector remains resilient. Expectations for turnover over the next quarter remain highly optimistic, consistent with October's evaluations.

In detail:

• Retail Trade: Business confidence dipped slightly due to downward revisions in sales expectations for the next quarter.

• Construction: Sentiment weakened marginally due to less favorable assessments of the current situation.

• Manufacturing: Confidence improved slightly, driven by an enhanced evaluation of the current situation.

Consumer confidence improved significantly in November, with all aspects showing positive trends. Compared to October, consumers assessed their current financial situation more favorably and revised upwards their expectations for the future economic conditions of their households and the country. Additionally, consumer intentions for major purchases in the coming months further strengthened during November.

The Economic Uncertainty Index for Cyprus decreased for the third consecutive month in November, reaching its lowest level in approximately five years. This indicates a notable reduction in uncertainty surrounding the economic outlook.