Nicosia, Cyprus. The Economic Sentiment Indicator in Cyprus fell by 0.2 points in January, reflecting weaker business confidence in several sectors, according to the Economics Research Centre of the University of Cyprus (CypERC). The centre said the decline was nearly offset by an improvement in services.
Economic sentiment and sector performance
CypERC said the marginal decline in the indicator was driven by weaker business sentiment in retail trade, construction and manufacturing, which almost fully offset the improvement recorded in services.
Consumer confidence and uncertainty
Consumer confidence remained at the high level recorded in December 2025. The Economic Uncertainty Indicator declined for a fourth consecutive month, extending a downward trend observed since autumn.
Business and consumer uncertainty trends
The research centre said the January decrease in uncertainty stemmed from lower business uncertainty across all sectors except manufacturing. Consumer uncertainty remained at very low levels despite an increase recorded in January.
Services sector outlook
In services, business confidence strengthened further, supported by improved expectations. Assessments of the recent financial situation deteriorated slightly, while responses regarding turnover over the past quarter improved marginally.
Turnover and employment expectations
Expectations for turnover in the next quarter strengthened after two months of decline. Business expectations regarding employment were revised downwards, although they remained fairly positive.
How do changes in business confidence across sectors affect the broader economic outlook in Cyprus?