Cyprus leading economic index declines 0.43 per cent in July 2026
Cyprus’ Composite Leading Economic Index recorded a smaller annual decline in July, as domestic gains partly offset external pressures.
Nicosia, Cyprus. The Cyprus Composite Leading Economic Index (CCLEI) recorded a year-on-year decline of 0.43 per cent in July 2026, according to revised data from the Economics Research Centre of the University of Cyprus (CypERC). The smaller decline indicates that the index’s downward trend is gradually easing, although short-term external and geopolitical pressures remain.
Index role
The CCLEI is designed to provide early warning signals of turning points in the Cypriot business cycle, as its constituent indicators generally change before overall economic activity.
CypERC regularly assesses domestic and international leading indicators to produce the index, which is intended to indicate the likely direction of economic activity before changes are reflected in broader economic data.
Components and July performance
The index comprises the Brent crude oil price, the Economic Sentiment Indicator (ESI) for Cyprus and the euro area, and total property sales contracts.
It also includes tourist arrivals, the value of Cypriot credit card transactions, the retail trade sales turnover volume index, and a temperature-adjusted volume index of electricity production.
The July reading reflected contrasting movements among the components. The weighted Economic Sentiment Indicator deteriorated compared with July 2025, mainly due to a weaker economic climate across all sectors of the Cypriot economy on an annual basis.
Brent crude oil prices also increased year on year, while tourist arrivals remained below their level a year earlier. These negative factors were partly offset by stronger performances in several domestic indicators.
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