**Cyprus Industry Sees 3.5% Growth in June 2026, Local Market Outpaces Exports**
Cyprus' industrial sector experienced a notable increase in its Industrial Turnover Index, which rose by 3.5 percent in June 2026, reaching a total of 149.5 units. This data was released on Friday by the Cyprus Statistical Service (Cystat). The growth trend was consistent throughout the first half of the year, with the index also reflecting a 3.5 percent increase compared to the same period in 2025.
The Industrial Turnover Index is calculated using 2021 as the base year, which is set at 100 units. This index serves as a measure of monthly turnover changes against the average monthly turnover recorded during that year, providing insights into the performance of various sectors within the industry.
Manufacturing, which constitutes the largest segment of the index, reached 153.8 units in June, marking a 3.6 percent annual increase. For the January to June period, turnover in the manufacturing sector also rose by 3.6 percent. Among the various manufacturing categories, wood and products of wood and cork (excluding furniture) exhibited the most significant growth, with turnover soaring by 22.1 percent in June. This category also recorded a substantial increase of 20.1 percent over the first half of the year compared to 2025.
Following closely were electronic and optical products and electrical equipment, which saw a turnover increase of 12.4 percent in June. However, this category faced a cumulative decline of 6.9 percent over the six-month period, marking it as the sector with the steepest downturn in manufacturing.
Textiles, wearing apparel, and leather products also showed strong performance, with an 8.1 percent increase in June and a 3.2 percent rise for the first six months. Basic metals and fabricated metal products recorded a 7.4 percent increase in June and a 9.1 percent rise during the first half of the year. Other non-metallic mineral products grew by 5.5 percent in June, although their six-month increase was more modest at 1.7 percent.
Food products, beverages, and tobacco products recorded steady growth, with a 3 percent increase in both June and the January to June period. Conversely, machinery and equipment, motor vehicles, and other transport equipment saw a more limited annual increase of 0.8 percent in June, resulting in a 2.3 percent growth for the first half of the year.
Despite the overall positive trends, several manufacturing categories experienced declines. Rubber and plastic products faced the largest drop, with turnover decreasing by 4.8 percent in June, though it remained 2.3 percent higher for the first six months. Furniture and other manufacturing, along with the repair and installation of machinery and equipment, also saw a decline of 4.4 percent in June and a 1.3 percent decrease during the January to June period. Paper and paper products, as well as printing, fell by 2.5 percent both in June and over the first half of the year. Turnover in refined petroleum products, chemicals, and pharmaceutical products decreased by 0.3 percent in June, but it was still 1.4 percent higher for the six-month period.
In addition to manufacturing, the mining and quarrying sector recorded the strongest annual increase, rising by 13.8 percent in June to reach 197.3 units. Turnover in this sector was up by 4 percent for the first half of the year. Water supply and materials recovery also showed positive growth, reaching 132.8 units with an 8.4 percent increase in June and an 8.9 percent rise during the January to June period. Specifically, materials recovery surged by 11.5 percent in June and 17.1 percent over the six-month period, while water collection, treatment, and supply increased by 6.8 percent and 4 percent, respectively. Electricity supply had a modest increase of 0.3 percent in June, with a total turnover increase of 1.4 percent during the first half of the year.
Notably, the local market index reached 153.7 units, rising by 4.3 percent in June and by 4.2 percent during the January to June period. In contrast, the export market index saw a decline of 0.9 percent in June, dropping to 127.6 units, and remained 0.8 percent lower over the first six months of the year.
The data indicates a robust performance in the local industrial market, with significant growth in several sectors, particularly manufacturing and mining. However, the decline in exports raises questions about the competitiveness of Cypriot products in international markets. As the year progresses, stakeholders will be keen to monitor these trends to understand their implications for the broader economy.