Cyprus recorded a marginal improvement in economic sentiment in June 2026, according to the latest Economic Sentiment Surveys, with the Economic Sentiment Indicator (ESI) rising by 0.2 points from May.

The surveys, conducted monthly by the University of Cyprus Economic Research Centre in collaboration with RAI Consultants, track how businesses and households view current conditions and their expectations for the months ahead.

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Retail, Construction And Consumers Lift The Index

The increase in the ESI was driven by stronger confidence in retail trade, construction and among consumers, offsetting weaker sentiment in the services sector. Despite the modest gain, the index remained above its long-term average of 100 points.

Sector Performance Remains Uneven

Retail and construction recorded improved sentiment, reflecting more positive assessments of current conditions and stronger expectations for the coming quarter. By contrast, confidence in services weakened as businesses reported less favourable assessments of current activity and lower expectations for turnover.

Manufacturing sentiment remained broadly unchanged, with weaker production expectations offset by an improvement in assessments of finished goods inventories.

Consumer Confidence Strengthens For A Second Month

Consumer confidence improved for a second consecutive month, supported by more optimistic expectations for household finances and the wider economy. At the same time, households reported a less favourable assessment of their recent financial situation.

Uncertainty Rises, But Inflation Expectations Stay Elevated

The Economic Uncertainty Indicator increased in June, although it remained below the levels recorded in March and April. The rise was driven mainly by services, construction and households.

Price expectations also remained elevated, indicating that inflationary pressures persist, albeit at a more moderate pace.