Nicosia, Cyprus. The Cyprus Composite Leading Economic Index (CCLEI) recorded a year-on-year increase of 2.9 per cent in January 2026, according to revised data published by the Economics Research Centre (CypERC) of the University of Cyprus. The latest reading followed year-on-year increases of 3.1 per cent in December 2025 and 3.2 per cent in November 2025.
Index performance and contributing factors
Despite a mild slowdown in its annual growth rate compared with the previous two months, the index remained in positive territory, reflecting favourable developments in most of its components.
Positive year-on-year growth rates were recorded in temperature-adjusted electricity production, property sales contracts, tourist arrivals, and retail trade activity.
The price of Brent crude oil in January registered a significant decrease compared with the corresponding month of the previous year, while the Economic Sentiment Indicator (ESI) in the euro area showed further improvement in January 2026.
Economic sentiment in Cyprus
The ESI in Cyprus deteriorated on an annual basis, mainly linked to a decline in the business climate in the services sector and, to a lesser extent, in the industrial sector.
Outlook and purpose of the index
CypERC said the positive year-on-year performance of the CCLEI in January indicates that the Cypriot economy continues to move along a stable growth trajectory, despite external uncertainties related to the international economic environment and geopolitical developments.
Further details on the methodology used in constructing the index are available on the CCLEI website. The CCLEI is designed to provide early warning signals of turning points in business cycles, namely shifts in overall Cypriot economic activity, and consists of leading variables whose movements tend to precede changes in aggregate economic activity and which are assessed on a regular basis.
How do you assess the latest CCLEI reading in relation to economic sentiment developments in Cyprus?