**Cyprus Industrial Production Sees 1.5% Increase in July 2026**
The latest report from the Cyprus Statistical Service (Cystat) reveals a positive trend in the country's industrial production, with the Industrial Production Index recording a 1.5% annual increase in July 2026. The index reached 129.2 units, using 2021 as the base year with a value of 100 points.
This growth is reflective of a broader upward trend observed over the first seven months of the year. From January to July 2026, the Industrial Production Index showed an overall growth of 1.6% compared to the same period in 2025. This sustained increase indicates a resilient industrial sector amidst various economic challenges.
A closer look at the individual sectors reveals that the manufacturing sector also experienced a 1.5% increase when compared to July of the previous year. Among the primary industrial sectors, water supply and materials recovery demonstrated the strongest annual growth, surging by 8.2%. This significant rise highlights the increasing importance of sustainable practices and efficient resource management in the industrial landscape of Cyprus.
Mining and quarrying also performed well, with a notable increase of 6% compared to July 2025. However, the electricity supply sector was the only main industrial category to report a decline, experiencing a decrease of 1.1% during the same period.
In terms of specific manufacturing divisions, the production of other non-metallic mineral products saw the largest annual increase, rising by 6%. Additionally, the manufacture of wood and products of wood and cork, excluding furniture, grew by 5.1%. Other sectors that showed promising growth included the manufacture of furniture, which, along with other manufacturing activities and the repair and installation of machinery and equipment, saw a rise of 3.8%. Basic metals and fabricated metal products experienced an increase of 3.7%, while electronic and optical products and electrical equipment grew by 2.8%.
Textiles, wearing apparel, and leather products also contributed positively, with a 2.3% increase, while rubber and plastic products rose by 2%. The food products, beverages, and tobacco sector saw only a marginal increase of 0.2%, indicating a more stable performance compared to other sectors.
On the downside, the manufacture of machinery and equipment, as well as motor vehicles and other transport equipment, recorded the largest annual decrease, plummeting by 6.8%. The manufacture of paper and paper products, along with printing, fell by 4.7%, and the refined petroleum products, chemicals, and pharmaceutical products sector experienced a decline of 2.9%.
When analyzing the January-to-July period, the most significant increase was seen in water collection, treatment, and supply, which rose by 11.7% compared to the same timeframe in 2025. The manufacture of basic metals and fabricated metal products followed with a growth of 5.7%, while the wood and products of wood and cork sector saw an increase of 4.8%.
Conversely, materials recovery faced challenges, recording the largest decline over the seven-month period with a drop of 6.6%. The machinery and equipment sector, along with motor vehicles and other transport equipment, also faced a decrease of 5.5% compared to the previous year.
Overall, the latest data from Cystat paints a mixed but cautiously optimistic picture of Cyprus's industrial production landscape. While certain sectors are thriving, others are struggling, highlighting the need for ongoing adaptation and innovation within the industry to sustain growth and address challenges ahead.