Nicosia:Economic sentiment in Cyprus showed improvement for the sixth straight month in September 2026, according to the Economic Sentiment Indicator (ESI-CypERC) of the Economic Research Centre at the University of Cyprus. The indicator increased by 0.6 points from August.

According to Cyprus News Agency, this rise was primarily attributed to slight enhancements in business sentiment across all sectors except retail trade. The Services Confidence Indicator experienced its third monthly increase, driven by upward adjustments in turnover expectations.

Conversely, the Retail Trade Confidence Indicator fell, as businesses reported more negative recent sales assessments and lowered their future sales expectations. In contrast, the Construction Confidence Indicator saw a slight rise, supported by better assessments of current order books and improved employment expectations.

The Industry Confidence Indicator also experienced a small increase due to more favorable views on current overall order books and finished product stocks, even though there was a notable decline in production expectations. However, the Consumer Confidence Indicator dropped, reflecting weakening expectations about future financial situations and reduced intentions to make significant purchases. Despite this, consumer savings intentions improved during the month.

The Economic Uncertainty Indicator for Cyprus rose significantly in September, driven by heightened business uncertainty, particularly within the services sector. Meanwhile, consumer uncertainty continued to decline, reaching low levels across all income categories.