**Cyprus Industrial Production Edges Up 0.5 Percent in May 2026**
Cyprus has reported a slight annual increase of 0.5 percent in its industrial production index for May 2026, according to data released by the state statistical service, Cystat. The industrial production index reached 116.7 units, based on a benchmark of 100 units established in 2021. This modest growth indicates a small expansion compared to the same month in the previous year, May 2025.
Over the broader five-month period from January to May 2026, industrial output showed a more significant increase of 1.5 percent compared to the same timeframe in 2025. This overall growth was driven by various sectors within the industrial landscape, with the core manufacturing sector experiencing a 0.8 percent rise in May 2026 relative to May 2025.
Notably, mining and quarrying operations also performed positively, with a 0.5 percent increase year-on-year. In contrast, the sector that encompasses water supply and materials recovery faced challenges, recording a decline of 3.4 percent compared to May 2025. Meanwhile, the electricity supply sector remained stable, showing no change in production activity year-on-year during May 2026.
Within the manufacturing sector, specific areas demonstrated significant growth. The production of other non-metallic mineral products surged by 5.5 percent in May 2026. Additionally, the combined segment of refined petroleum products, chemicals, chemical products, and pharmaceutical preparations saw a notable increase of 4.2 percent.
However, not all sectors experienced growth. The manufacturing of textiles, wearing apparel, and leather products faced the largest decline in May 2026, dropping by 6.4 percent compared to the same month in the previous year. The manufacturing of machinery, equipment, motor vehicles, and other transport equipment also saw a contraction of 5.3 percent.
When examining the cumulative results for the January to May 2026 period, the water collection, treatment, and supply sector emerged as the most significant growth area, with a remarkable increase of 10.9 percent. The electricity supply industry also recorded a substantial gain of 6.2 percent over the same five-month period. Furthermore, the manufacturing of basic metals and fabricated metal products expanded by 5.6 percent, while the production of wood and wood and cork products, excluding furniture, increased by 3.2 percent.
Conversely, the materials recovery sector experienced the steepest decline over the five-month period, decreasing by 7.1 percent when compared to the January to May 2025 baseline. The manufacturing of machinery, equipment, motor vehicles, and other transport equipment contracted by 5.1 percent during the same timeframe. Additionally, the textiles, wearing apparel, and leather products sector saw a decline of 4.6 percent, matching the contraction in the segment covering furniture, other manufacturing, and the repair and installation of machinery and equipment.
Overall, while Cyprus's industrial production showed a slight annual increase in May 2026, the mixed performance across various sectors highlights the complexities of the industrial landscape, with both growth and declines evident in different areas of production.