NICOSIA, June 26 (Xinhua) -- Economic sentiment in Cyprus declined in June on account of weaker business confidence in the construction and services sectors, a report by the Economics Research Center of the University of Cyprus said on Wednesday.
The report said that the Economic Sentiment Indicator, prepared every month, as part of the "Business and Consumer Surveys funded by the European Union, fell by 1.9 points in June, compared with May, 2019, the report said.
The survey added that the construction confidence indicator declined due to more negative assessments by firms based on the current level of order books and also downward revision of employment expectations.
Recent statements by the heads of government department involved in the process for issuing new building licenses suggested that there has been a considerable decrease in the purchase or properties under the investment for passport program, probably as a result of the introduction of stricter rules and procedures, after EU pressure.
The report said firms involved in the services sector also had less favorable views of their past performance and downward revision in demand expectations.
The construction and services sectors are the key factors in Cyprus's spectacular economic recovery and increase of GDP by an accumulated growth of about 13 percent following the 2013 bailout of the island and the resolution of the banking sector.
Contrary to negative expectations about the construction and services sectors, industry and retail trade provided a positive outlook.
The report said that there has been an increase of the industry confidence indicator as a result of improved views by firms on the current level of their order books and their stocks of finished products, as well as upward revisions in production expectations.
It added that there was also a small increase in the retail trade confidence indicator as a result of improved assessments of past sales and current stock volumes.
