Nicosia: Economic sentiment in Cyprus improved for the fifth consecutive month in August 2026, with the Economic Sentiment Indicator (ESI-CypERC) increasing by 1.4 points compared with July, according to the Economic Research Centre of the University of Cyprus.
According to Cyprus News Agency, The increase was driven by stronger consumer confidence and higher business confidence across all sectors except construction. Confidence in the services sector rose further, as firms assessed their recent performance, including their business situation and turnover, more favourably, despite lowering their turnover expectations.
The Retail Trade Confidence Indicator increased marginally, reflecting upward revisions in firms' sales expectations, while the increase in the Industry Confidence Indicator was attributed to more optimistic production expectations. In contrast, the small decline in the Construction Confidence Indicator resulted from less favourable assessments by firms of their current overall order books.
Consumer confidence also improved in August, as consumers assessed both their current and future financial situation more favourably compared with July. In addition, their intentions to make major purchases strengthened significantly. Meanwhile, the Economic Uncertainty Indicator for Cyprus decreased further in August, driven by lower consumer uncertainty and reduced business uncertainty among firms in the services and industry sectors.