In September 2026, economic sentiment in Cyprus improved for the sixth consecutive month, with the Economic Sentiment Indicator of the Economic Research Centre (ESI-CypERC) of the University of Cyprus, increasing by 0.6 points compared with August.
"This increase was driven by small improvements in business sentiment in all sectors except retail trade," CypERC notes.
The Services Confidence Indicator rose for the third consecutive month, with the September increase reflecting upward revisions in turnover expectations.
At the same time, the Retail Trade Confidence Indicator decreased as firms assessed their recent sales more negatively and revised their sales expectations downwards.
The Construction Confidence Indicator increased slightly, supported by an uptick in both current order book assessments and employment expectations.
Moreover, the Industry Confidence Indicator edged up, reflecting improved views on both current overall order books and stocks of finished products, despite a significant deterioration in production expectations.
However, the Consumer Confidence Indicator declined as consumers’ expectations regarding their future financial situation deteriorated and their intentions to make major purchases weakened.
At the same time, consumers’ savings intentions strengthened in September.
As far as the Economic Uncertainty Indicator for Cyprus is concerned, the CypERC notes that it rose markedly in September, driven by an increase in business uncertainty, particularly among firms in the services sector.
By contrast, consumer uncertainty declined further, reaching very low levels across all income categories.
(Source: CNA)
