Cyprus economic climate index declined in October 2026

The economic climate in Cyprus experienced a downturn in October 2026, as reported by the Economic Research Centre (ERC) of the University of Cyprus. The Economic Sentiment Indicator (ESI) dropped by 1.0 point compared to the previous month of September, reflecting a broader cooling of market sentiment.

The decline was primarily attributed to weakening consumer confidence, as households reported a more negative assessment of their current financial situation compared to previous months. Furthermore, consumers revised their expectations for the future financial status of both their own households and the country as a whole. To a lesser extent, the overall index was affected by a deterioration in the manufacturing sector, where businesses reported lower production expectations and a decrease in current order volumes.

Despite these declines, the report noted that the business climate in the services sector remained stable at the positive levels observed in September. Additionally, the construction industry showed a marginal improvement, characterized by more favorable evaluations of ongoing activity.