According to a consumer survey carried out by RAI Consultants for the ERC, the increase was due to an improvement in the business climate in all sectors covered, as well as a surge in consumer confidence.

In services, the climate improvement was the result of favourable assessments of the economic situation and business operating cycles over the last quarter.

But in the industries of retail sales, construction and processing, the climate remained negative, though some improvement was recorded. In contrast with services, where the boost in confidence related to recent developments, relative improvement in these sectors related mainly to increased optimism in sales, employment and production over the next three months.

Increased consumer confidence was found to have arisen from less negative expectations of households’ financial status over the next year, the belief that a rein-in of unemploymentis imminent and a less negative outlook towards savings.

Source: Cyprus Mail