Cyprus Economic Sentiment Indicator rose in July 2026

In July 2026, the Economic Sentiment Indicator (ESI) in Cyprus increased by 0.7 points, marking the third consecutive month of growth, according to data from the Economic Research Centre of the University of Cyprus. The ESI currently remains slightly above the long-term average of 100 points, reflecting a moderate improvement in national economic sentiment.

The rise was primarily driven by a strengthened business climate in the services and retail trade sectors, fueled by optimistic sales expectations for the coming months. Conversely, the manufacturing sector saw a decline in sentiment due to poorer production outlooks and elevated stock levels. Construction and consumer sentiment also worsened, with households reporting a more negative view of their current financial situation and lowering their expectations for the future. Meanwhile, the Economic Uncertainty Index fell, largely due to reduced uncertainty in services and retail, although consumer uncertainty rose for the second month in a row, particularly among low-income households.

The researchers note that the current improvement in economic confidence remains vulnerable to geopolitical developments in the Middle East. Continued monitoring of these sectors will be necessary to determine if the upward trend in overall economic sentiment can be sustained in the coming months.