The Center for Economic Research at the University of Cyprus (CypERC) reported an improvement in the economic sentiment in April 2026, following three months of decline, in its latest Economic Sentiment Survey.
As noted, the Economic Sentiment Index (ESI) rose by 2.1 points compared to March, an increase driven by less negative business sentiment among firms in the services sector, primarily due to upward revisions in expectations.
According to CypERC, the increase in the Services Confidence Indicator was primarily due to a significant upward revision in firms’ turnover expectations and, to a lesser extent, to an uptick in firms’ assessments of recent turnover performance, whereas, despite April’s improvement, business confidence in services remained relatively low, particularly among firms in hospitality services.
It is underlined that a sharp drop in the Retail Trade Confidence Indicator resulted from a significant deterioration in firms’ views on both recent and expected sales, while the Construction Confidence Indicator decreased slightly, as firms’ assessments of current order book levels worsened further.
It is added that the Industry Confidence Indicator declined markedly, reflecting a deterioration in firms’ assessments of their current order book levels and lower production expectation, while the Consumer Confidence Indicator continued to decline in April, as consumers’ views on their recent and future financial situation deteriorated further, and their intentions to make major purchases weakened for the fourth consecutive month.
The Economic Uncertainty Indicator for Cyprus declined in April but remained relatively elevated, the centre continues, adding that business uncertainty in the retail trade and services sectors declined, although it remained at high levels, especially among firms in hospitality and financial services, while economic uncertainty in the construction and industry sectors, as well as among consumers—particularly those in low-income households—increased further.
(Source: CNA)
