Insider / ΚΥΠΕ
The economic climate deteriorated in January 2022 with the Economic Situation Index (DOS) decreasing by 2.4 points compared to December 2021. The decrease in the DOS is mainly due to the weakening of the business climate in services and, to a lesser extent, in the recession of the climate in the retail trade.
According to a bulletin of the Center for Economic Research of the University of Cyprus, the weakening of the climate in services was the result of worse evaluations of the turnover during the last quarter and more pessimistic estimates for the turnover of the next quarter. In the retail trade, companies evaluated their recent sales more negatively, resulting in a decline in the climate. Compared to December, the construction companies evaluated their ongoing projects more favorably, leading to an increase in the climate in the sector. In manufacturing, the climate remained stable at the slightly negative levels of December.
The rise in consumer confidence in January is mainly related to the strengthening of consumer intentions regarding spending on large markets and the upward revision of expectations for the future economic situation in Cyprus.
Uncertainty between businesses and households in Cyprus rose in January. Business and consumer expectations for the price trend fluctuated at high levels, indicating upward pressures.