A total of 124 enterprises/members of the Limassol Chamber of Commerce & Industry, participated in the Spring 2023 edition of the Chamber Business Barometer, with the findings collated and analysed by the end of May. The overall conclusion is that there is a generally optimistic outlook, certainly compared to Autumn 2022, and, even more so, compared to Spring 2022.
Where the positive sentiment is particularly evident, is in the forecasts of businesses for the course of their sales in the near future. 43% of Barometer respondents expect their sales to increase in the next quarter, while only 18% had the same estimate six months earlier. Similarly, those predicting a decline have now been confined to 7% (24% in Autumn 2022 and 32% in Spring 2022).
Perceptible, albeit clearly more restrained, is the improvement observed in terms of the confidence of businesses in the prospects of the Cyprus economy, a chapter which is also related to the wider psychology vis-a-vis current economic situation. Thus, those appearing with increased confidence (17%) were fewer than those with reduced confidence (20%). The positive element, however, is that six months earlier, the respective percentages were 7% and 28%.
In terms of problems, beyond the largely expected ones of labour shortages and labour costs, concern over rising interest rates is now quite evident. Certainly not unrelated to this development is the fact that a significant percentage (27%) of those who declare that they will not proceed with new investments, cite prohibitive costs as the reason. In addition, difficulties in collecting debts are also considered a serious problem.
As regards foreseeable risks for business in the coming months, rising costs remain stable in the first place, although with less intensity than six or twelve months before. Also, in relation to the factors that could have a strong effect on the economy in the next quarter, the rising prices of raw materials and basic commodities, and the Russian-Ukrainian conflict, remain in the top two positions although with lower intensities than before.
The full analytical findings of the Barometer, which also include sectoral analyses, can be accessed by any interested party through the Chamber website www.limassolchamber.eu
