Nicosia, Cyprus. Cyprus’ economic sentiment continued to improve in July 2026, supported by stronger confidence among businesses in the services and retail trade sectors, according to the Economics Research Centre of the University of Cyprus.
The Economic Sentiment Indicator increased by 0.7 points from June, extending a positive trend seen in recent months despite weaker consumer confidence.
Services and retail trade
The Economics Research Centre of the University of Cyprus said the improvement was driven mainly by stronger business sentiment in services and retail trade.
The Services Confidence Indicator rose as firms became more optimistic about expected turnover in the coming months.
The Retail Trade Confidence Indicator increased for a second consecutive month, reflecting more favourable assessments of current stock levels and stronger expectations for future sales.
Construction and industry
Confidence weakened slightly in construction and industry during July.
The Construction Confidence Indicator edged down marginally, mainly due to less favourable assessments of firms’ current overall order books.
The Industry Confidence Indicator also declined, largely because of less favourable assessments of finished product stocks and lower expectations for future production.
Consumer confidence
While businesses generally became more optimistic, consumers grew more cautious, the centre said.
