Cyprus' economic sentiment improved for a fifth consecutive month in August 2026, with the Economic Sentiment Indicator rising by 1.4 points compared with July, according to the University of Cyprus Economic Research Centre.
The latest increase was driven by stronger business confidence across all sectors except construction, as well as an improvement in consumer sentiment.
Confidence in the services sector strengthened as businesses reported more positive assessments of their current economic situation and turnover over the past three months.
Sentiment in retail trade and manufacturing also improved, reflecting more optimistic business expectations for sales and production respectively.
In contrast, confidence in the construction sector edged lower due to less favourable assessments of companies' ongoing projects.
Consumer sentiment also improved during August.
Consumers gave more favourable assessments of both the current and expected future financial situation of their households. In addition, intentions to make major purchases over the coming months strengthened significantly.
The Economic Uncertainty Indicator declined further in August, reflecting lower consumer uncertainty across all income groups, as well as reduced business uncertainty in the services and manufacturing sectors.
