Cyprus’ Composite Leading Economic Index (CCLEI) remained in negative territory in June 2026, declining 0.65% year on year, according to the Economics Research Centre of the University of Cyprus (CypERC).

External Pressures Continue To Shape The Outlook

Although the index remained below its level a year earlier, CypERC said the pace of decline moderated in June, suggesting some easing in the downward trend.

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The research centre nevertheless warned that external economic and geopolitical conditions continue to weigh on Cyprus’ short-term economic outlook.

Sentiment, Energy Costs And Tourism Weigh On The Index

According to the report, the annual decline was driven by weaker economic sentiment, higher Brent crude oil prices, lower temperature-adjusted electricity production and fewer tourist arrivals.

A key factor was the weighted Economic Sentiment Indicator (ESI), which combines confidence measures for Cyprus and the euro area and remained below its June 2025 level.

Domestic Indicators Provide Support

Several domestic indicators helped offset part of the decline. Higher credit card spending, stronger retail sales and an increase in property sales contracts all contributed positively to the index.

Those gains indicate that consumer spending and property market activity remained relatively resilient despite a more challenging external environment.

The CCLEI is designed to signal turning points in the Cypriot business cycle by tracking a range of domestic and international indicators, including economic sentiment, tourism, property transactions, retail sales, electricity production and Brent crude oil prices.