By Stelios Orphanides
The economic sentiment indicator dropped by 3.4 units in December to 118.9 units from its November peak, mainly on reduced business confidence in the services sector, the University of Cyprus said.
The deterioration of confidence in services was mainly on less favourable evaluation of the current financial situation by interviewed companies and a downwards revision of expectations over the next three-month period, the Economic Research Centre (ERC) of the academic institution said in a statement on its website on Friday.
It also said that business confidence in construction dropped marginally last month, mainly on less favourable expectations with respect to employment levels in the sector over the next three-month period.
Business confidence in the retail trade improved in December as interviewed firms said that their current situation and expectations improved, the ERC said. Confidence in the industrial sector remained unchanged.
Lastly, consumer confidence fell last month as households were more reserved with regards to their future financial situation as well as that of the economy, including further labour market conditions, the ERC added.