“After the big fall recorded in all sub-sectors in April, following the developments in the banking system, the projections of businesses and consumers alike seem to be returning to the less negative levels that prevailed in the beginning of the year,” the UCy survey said. “In general, however, confidence in the Cyprus economy remains very fragile as there are no clear trends for improvement in all sectors, especially in construction, manufacturing and households.” 

The survey added that the Capacity Utilisation Index) in manufacturing and services may have recorded an improvement in July compared to April, but still remains below the year-earlier level of July 2012 in both sectors. “As a result, businesses in these two sectors are not expected to proceed with any investments to raise capital or to increase employment,” the survey concluded.

Source: Financial Mirror