Cyprus’ industrial sector posted a solid gain in July 2026, with the Industrial Turnover Index rising 5 per cent year on year to 168.8 units, according to figures released Monday by the Statistical Service of Cyprus (Cystat). The increase was driven by stronger domestic market activity, even as export turnover registered a sharp decline.
Over the first seven months of the year, the index rose 3.9 per cent compared with the same period in 2025, underscoring a steady, if uneven, expansion across the industrial economy.
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Manufacturing Leads The Gains
Manufacturing, the largest component of the index, reached 164.5 units in July, up 4.8 per cent from a year earlier. For January through July, the sector was up 3.9 per cent.
Within manufacturing, electronic and optical products and electrical equipment delivered the strongest annual performance. The category surged 85.3 per cent in July to 187.2 units, while remaining 11.7 per cent higher over the first seven months of the year.
Furniture, other manufacturing and the repair and installation of machinery and equipment also performed strongly, climbing to 190.6 units. Turnover in the category rose 38.4 per cent in July and 4 per cent in the January-to-July period.
Textiles, wearing apparel and leather products reached 155.9 units, increasing 12.1 per cent in July and 4.3 per cent over the seven-month period.
Wood and wood products, excluding furniture, stood at 205 units, up 6.2 per cent in July and 18.2 per cent for the year to date. Other non-metallic mineral products reached 188.6 units, rising 3.9 per cent in July and 1.9 per cent over the first seven months.
Basic metals and fabricated metal products increased to 184.5 units, with turnover up 3.5 per cent in July and 7.6 per cent between January and July. Food products, beverages and tobacco products advanced more modestly to 152.6 units, up 1.4 per cent in July and 2.9 per cent year to date. Rubber and plastic products rose to 160.6 units, gaining 1.5 per cent in July and 2.2 per cent over the period.
Some Industrial Segments Remain Under Pressure
Not all manufacturing segments shared in the improvement. Machinery and equipment, motor vehicles and other transport equipment recorded the steepest decline, falling 13.2 per cent year on year in July to 159.5 units. The category was also 1.1 per cent lower over the January-to-July period.
Refined petroleum products, chemicals, chemical products and pharmaceutical products and preparations also weakened, declining 10.1 per cent in July to 133.3 units. The category was marginally lower, by 0.3 per cent, over the first seven months of the year.
Paper and paper products and printing fell to 113.3 units, down 4.2 per cent in July and 2.7 per cent year to date.
Utilities And Resource Sectors Also Advance
Beyond manufacturing, water supply and materials recovery posted the strongest annual increase among industrial subsectors, with the index rising to 174.6 units. Turnover in the segment climbed 16 per cent in July and 12.8 per cent over the first seven months of the year.
Materials recovery reached 162.2 units, rising 20.3 per cent in July and 24.1 per cent during the January-to-July period. Water collection, treatment and supply stood at 185.6 units, up 12.9 per cent in July and 5.9 per cent year to date.
Mining and quarrying also expanded, reaching 209.4 units, with turnover up 7.4 per cent in July and 4.5 per cent over the seven-month period. Electricity supply recorded a more moderate gain, with the index at 184.7 units, up 3.4 per cent in July and 1.7 per cent from January to July.
Domestic Demand Outpaces Exports
The split between domestic and foreign demand was stark. The local market index rose to 175.3 units in July, up 7.4 per cent from a year earlier and 4.7 per cent over the first seven months of 2026.
By contrast, the export market index fell 8.6 per cent in July to 134.8 units and was 0.5 per cent lower for the January-to-July period. The divergence suggests that Cyprus’ industrial momentum remains supported primarily by internal demand, while external markets continue to weigh on performance.
As the year progresses, the data point to a sector that is growing, but not evenly. Domestic strength is cushioning softer export conditions, leaving policymakers and businesses to monitor whether the gap narrows in the second half of the year.
