A decline in consumer confidence weakened the economic climate in October 2026, according to the Economics Research Centre (ERC) of the University of Cyprus. The Economic Sentiment Indicator (ESI) fell by 1.0 point compared with September.
According to the ERC, the decline in the ESI was driven “mainly by a further weakening of consumer confidence and, to a lesser extent, by a deterioration in business sentiment in manufacturing.”
“Consumers assessed the recent financial situation of their households much more negatively than in previous months,” it added.
It also noted that in October, consumers revised down their expectations for the future economic situation of both their households and the country.
Furthermore, the ERC said the deterioration in sentiment in manufacturing was driven by more negative assessments of current order books and lower production expectations.
It reported that business sentiment in services remained stable at September’s positive levels, while sentiment in the construction sector improved slightly, driven by more favourable assessments of the current situation (ongoing projects).
According to the ERC, the improvement in retail trade sentiment in October reflected better assessments of both the current situation and sales expectations.
Furthermore, according to the ERC, the Economic Uncertainty Index rose again in October, driven by increased uncertainty among consumers and businesses in all sectors except construction.
“The increase in uncertainty among businesses in the services sector and among households across all income groups played the most significant role in the rise in the index in October,” it added.
(Source: CNA)
