Cyprus economic sentiment indicator rises in July 2026

In July 2026, the Economic Sentiment Indicator (ESI) in Cyprus rose by 0.7 points, maintaining a growth trend that has lasted for three months. According to data from the University of Cyprus Economics Research Centre, this increase is primarily attributed to a more optimistic business climate within the services and retail trade sectors, driven by positive turnover expectations for the coming months. Since May, the ESI has remained consistently above the long-term historical average of 100 points.

Despite the overall improvement, the economic climate faced challenges in other areas. Sentiment declined in manufacturing and construction, and consumer confidence also retreated as households reported a more negative assessment of their personal financial situations. Furthermore, while the Economic Uncertainty Indicator dropped overall due to stabilization in services and retail, consumer uncertainty increased for the second consecutive month, particularly impacting lower-income households. The report highlights that the current economic confidence remains vulnerable to potential geopolitical shifts in the Middle East, which could influence future energy prices and real household income levels.