The economic climate in Cyprus registered a slight improvement in February 2025, the Economics Research Centre of the University of Cyprus (CypERC) reported this week.

Specifically, the Economic Sentiment Indicator (ESI) rose by 0.8 points compared to January 2025, according to the CypERC’s latest economic sentiment survey.

The increase in the ESI was driven by strengthened business sentiment across all sectors, with the exception of retail trade.

In the services sector, sentiment improved slightly in February as businesses assessed their turnover over the past quarter more positively compared to the previous month.

The construction sector experienced a significant boost in confidence, attributed to more favourable evaluations of ongoing projects and more optimistic employment expectations within the sector.

Manufacturing also recorded a slight increase in sentiment due to improved assessments of the current situation, particularly in total orders and inventories, despite a deterioration in expectations.

Retail trade sentiment remained at January levels, as a weakening in expectations was offset by an improvement in the current situation.

Consumer confidence declined for the second consecutive month, driven by a deterioration in consumer expectations regarding the financial situation of their households and the country’s economy overall.

However, in February, consumer intentions to make major purchases in the coming months increased significantly.

The Economic Uncertainty Index for Cyprus continued to decline in February, primarily due to a further reduction in uncertainty in the services and construction sectors.

Uncertainty in the remaining sectors, as well as among consumers, increased slightly.