Nicosia, Cyprus. The Economics Research Centre of the University of Cyprus (CypERC) reported that economic sentiment in Cyprus improved in April 2026, while warning of slowing growth momentum and rising uncertainty. The Economic Sentiment Indicator rose by 2.1 points from March, but remained below its historical average of 100 points.
Services sector drives improvement
CypERC said the increase was driven mainly by less negative business sentiment in the services sector. The improvement was attributed largely to a significant upward revision in turnover expectations, alongside a more modest improvement in assessments of recent turnover performance.
Hospitality remains a weak spot
Despite the gains, business confidence in services remained relatively low, particularly among firms in hospitality services, reflecting ongoing sectoral challenges.
Retail confidence declines sharply
In contrast, the retail trade sector recorded a sharp decline in confidence, as firms reported deteriorating views on both recent and expected sales.
Construction and industry weaken
Confidence in the construction sector weakened slightly, with firms expressing more negative assessments of current order book levels. The industry sector experienced a more pronounced decline in confidence, driven by weaker order books and lower production expectations.
Consumer confidence continues to fall
Consumer confidence continued to decline, with households expressing increasingly negative views on their financial situation and showing reduced willingness to make major purchases for a fourth consecutive month.
Uncertainty indicator declines but remains elevated
CypERC reported that the Economic Uncertainty Indicator fell in April but remained at relatively elevated levels, highlighting persistent uncertainty across the economy.
How do you expect changes in consumer confidence to affect spending in Cyprus in the coming months?