NICOSIA May 28 Economic sentiment in Cyprus
improved significantly in May, a publicly funded survey showed
on Wednesday, reaching 2010 levels after hitting a trough due to
its international bailout last year.
The economic sentiment indicator (ESI) rose 2.3 points in
May to 100.7 points, topping its 100-point base level for the
first time in four years, on the back of an improved outlook in
the services sector. That area was likely to drive future
economic growth, researchers at the University of Cyprus said.
The ESI is collated from respondents in surveys ranging from
consumer spending patterns to retail trade, manufacturing and
construction. Readings below 100 mean negative sentiment and
above that base level indicate optimism.
The outlook in the retail and construction sector remained
subdued, the University's economic research department said.
International lenders recently revised their outlook for the
Mediterranean island's economy, saying a recession this year
would be shallower than expected because of more resilient
The EU and the IMF modified the island's output projection
to -4.2 percent from a February forecast of -4.8 percent.
The business indicator has been rising steadily since April
2013, a month after Cyprus needed a 10 billion euro ($13.6
(Reporting by Michele Kambas; Editing by Louise Ireland)