Nicosia, Cyprus. Cyprus’ economic climate improved marginally in June 2026, with the Economic Sentiment Indicator rising by 0.2 points from May, according to the latest monthly business and consumer survey by the Economics Research Centre of the University of Cyprus (CypERC). The increase was driven by stronger sentiment in retail trade and construction and a further improvement in consumer confidence, which offset weaker business confidence in services.
Retail and construction improve
Businesses in retail trade and construction assessed their current situation more positively than in the previous month and expressed greater optimism about activity over the next three months, according to the survey.
Services sentiment weakens
Sentiment in the services sector deteriorated, reflecting less favourable assessments of recent economic performance and lower expectations for turnover in the coming months.
Manufacturing remains stable
The report showed that the business climate in the manufacturing sector remained broadly unchanged from May. A deterioration in assessments of current orders was balanced by more favourable evaluations of stocks of finished products.
Consumer confidence rises again
Consumer confidence strengthened for a second consecutive month, with households revising upwards their expectations for both their own financial situation and the outlook for the Cypriot economy. However, consumers’ assessments of their recent financial situation were less favourable than in the previous month.
Uncertainty indicator increases
Despite the improvement in overall economic sentiment, the Economic Uncertainty Indicator increased in June. Even so, uncertainty remained below the levels recorded in March and April, the report showed.