News Local Economic decline presented in July

Economic decline presented in July

Decline presented in July with the economic indicator decreasing by 3.9 units, compared to June 2015 .

This decrease is due to a weakening of the business climate in services and in manufacturing, as well as weakening of the consumers, according to the Business and Consumer Survey of the Economics Research Centre of the University of Cyprus.

The loss of trust in services is related to unfavourable assessments of the economic situation and business demand in the last quarter and more pessimistic estimates of their turnover in the next quarter.  

The weakening climate in manufacturing comes from reduced number of orders and estimates for reduced production in the next quarter. The loss of consumer’s trust comes from the most the number of unemployed in Cyprus and the lower deposits in the next 12 months.

The climate in retail trade recorded a marginal improvement while the negative levels in construction remained unchanged in the last two months.
According to the survey, the decline of the ESC in July seems to be associated with the political and economic developments in Greece and may be temporary.

Source: CNA