The decline in confidence in services last month resulted from the interviewed companies’ assessments of business conditions over the past three months combined with a downward revision of expected demand, the Economic Research Centre (ERC) of the university said in a statement on Friday. Companies in the industrial sector cited their inventories of finished products for the declining confidence and a downward revision in expected output.

On the other hand, retail trade companies said their assessment of stock volumes improved and expected more sales in May compared to the month before, the ERC said. Construction companies were also upbeat on more favourable assessment of their order book.

Consumer confidence fell marginally as households expected their future financial conditions and Cyprus’s economic situation to worsen, it said.

Source: Cyprus Mail