Cyprus’ Composite Leading Economic Index (CCLEI) strengthened further in September, pointing to an improvement in the country’s short-term economic outlook, according to the University of Cyprus' Economics Research Centre (CypERC).
The CCLEI recorded a year-on-year increase of 0.28% in September 2026, up from a marginal 0.01% increase in August, marking the second consecutive month of positive year-on-year growth after a decline of 0.29% in July.
The further strengthening of the index was mainly driven by the positive performance of several domestic components. Property sales contracts, credit card transactions by Cypriots and the retail sales turnover volume index contributed positively to the CCLEI’s annual growth rate.
The year-on-year change in the weighted Economic Sentiment Indicator was also positive, although limited.
At the same time, the increase in the CCLEI was constrained by a significant rise in Brent crude oil prices compared with September 2025, as well as year-on-year declines in tourist arrivals and in the temperature-adjusted volume of electricity production.
According to CypERC, the positive performance of components related to the real estate market, retail trade and economic sentiment indicates resilience in Cypriot economic activity despite continuing pressures from the external environment.
However, the Centre noted that the sharp rise in oil prices, together with broader geopolitical and economic uncertainty, continued to pose significant downside risks to Cyprus’s economic growth.
The CCLEI is designed to provide early warning signals of turning points in the business cycle, with its components tending to precede changes in overall economic activity.
The index includes the Brent crude oil price, the Economic Sentiment Indicator in Cyprus and the euro area, property sales contracts, tourist arrivals, the value of Cypriot credit card transactions, the retail trade sales turnover volume index and the temperature-adjusted volume of electricity production.
(Source: CNA)
