Filenews 31 July 2025
The Economic Conjuncture Index (TAS) in Cyprus strengthened by 1.3 points in July 2025, after three consecutive months of decline, according to the results of the Economic Conjuncture Surveys conducted by the JIT of the University of Cyprus and RAI Consultants. The increase is attributed to the improvement of the business climate in all sectors, with a stronger contribution from the construction sector.
The improvement was mainly based on more positive assessments of the current state of enterprises and less on future expectations. In services, despite low expectations for future turnover, enterprises recorded a noticeable improvement in the performance of the last quarter. In manufacturing, the recovery was mainly related to production and inventories, but there were no changes in expectations for the coming months.
A significant improvement was also recorded in the indicators for construction, with positive assessments for ongoing projects and employment. Retail trade also showed support due to increased sales and limited inventories.
In contrast, consumer sentiment worsened in July, reversing a four-month upturn. Consumers expressed pessimistic assessments of the personal and national economic situation, while the intention for significant purchases and savings decreased.
Despite the rise in consumer uncertainty, the Economic Uncertainty Index declined overall due to a reduction in business uncertainty in most sectors, except manufacturing.
With regard to capacity utilisation, manufacturing saw a mild decline for the second quarter, at 65%, but remained above the long-term average. In the services sector, capacity utilisation increased to 85%, with the accommodation and catering sub-sector maintaining a high performance thanks to strong tourism demand.
