Cyprus’ short-term economic outlook improves in September

Nicosia, Cyprus. Cyprus’ short-term economic outlook improved in September 2026, supported by stronger property activity, increased card spending and rising retail sales volumes. Higher oil prices and weaker confidence among consumers and retailers continued to pose risks.

Leading economic index strengthens

The Cyprus Leading Economic Index (CCLEI), compiled by the University of Cyprus Economics Research Centre (CypERC), increased by 0.28 per cent year-on-year in September, following a rise of 0.01 per cent in August.

“The further strengthening of the year-over-year growth rate of the CCLEI in September points to an improvement in Cyprus’ short-term economic outlook,” CypERC stated.

The increase was supported by growth in property sale contracts, credit card transactions by Cypriots and the retail sales turnover volume index.

Business sentiment rises for sixth month

The Economic Sentiment Indicator for Cyprus, also compiled by CypERC, rose by 0.6 points in September compared with August, marking its sixth consecutive monthly increase.

The improvement reflected modest gains across most business sectors. Services confidence rose for a third consecutive month, supported by stronger turnover expectations.

Construction confidence also edged up as order books and hiring plans improved. Industrial confidence increased on better assessments of current orders and stock levels, despite lower production expectations.

Consumers and retailers remain cautious

Retail trade confidence declined as businesses reported weaker recent sales and less positive expectations for the months ahead.

Consumer confidence also weakened. Households expressed greater caution about their financial prospects and less willingness to make major purchases, although their intentions to save increased.

The overall picture remained mixed, with improving business sentiment across several sectors offset by caution among consumers and retailers.