Cyprus economic sentiment index rises for sixth consecutive month in September 2026

In September 2026, the Economic Sentiment Indicator (ESI) in Cyprus increased by 0.6 points compared to August, marking the sixth consecutive month of improvement. According to data released by the Economic Research Centre of the University of Cyprus, this growth was primarily driven by a better business climate in the services, construction, and manufacturing sectors.

The services sector showed growth for the third consecutive month, fueled by optimistic expectations for turnover in the next quarter. In construction, businesses reported a marginal improvement regarding ongoing projects and employment estimates, while the manufacturing sector saw better evaluations of current orders and inventory, despite a notable decline in production forecasts. Conversely, the retail sector experienced a downturn due to poor sales performance and pessimistic outlooks for future quarters. Additionally, consumer confidence weakened slightly as households expressed caution regarding their financial status and future large-scale purchases.

This continuous upward trend reflects a generally resilient business environment, although the decline in retail confidence and consumer sentiment highlights localized economic pressures. The University of Cyprus continues to monitor these monthly indicators to assess the broader economic trajectory of the country.