Manufacturing downturn pulls Cyprus industrial output lower

Cyprus’ industrial production fell by 1.3 per cent year-on-year in August 2026, with a decline in manufacturing outweighing increases in mining, water supply and electricity, according to the Cyprus Statistical Service (Cystat). The Industrial Production Index reached 90.9 points in August, using 2021 as the base year with a value of 100, marking a decrease compared with August 2025. Despite the monthly annual decline, industrial production increased by 1.2 per cent during the first eight months of 2026 compared with the corresponding period of the previous year. The manufacturing sector recorded a 2.5 per cent annual decrease in August. By contrast, mining and quarrying production rose by 11 per cent, while water supply and materials recovery increased by 5.7 per cent. Electricity supply recorded a marginal increase of 0.1 per cent over the same period. Within manufacturing, the strongest annual increases in August were recorded in the production of rubber and plastic products, which rose by 7.1 per cent, and wood and cork products, excluding furniture, which increased by 6.4 per cent. The sharpest decline was recorded in the manufacture of machinery and equipment, motor vehicles and other transport equipment, where production fell by 12.8 per cent compared with August 2025. Manufacturing of refined petroleum products, chemicals and chemical products, and pharmaceutical products and preparations declined by 7.1 per cent. Production of other non-metallic mineral products fell by 4.8 per cent year-on-year. Looking at the January to August 2026 period, the strongest increases compared with the same period in 2025 were recorded in water collection, treatment and supply, which rose by 11.5 per cent. Manufacturing of basic metals and fabricated metal products increased by 5.5 per cent, while production of wood and cork products, excluding furniture, rose by 5 per cent. The largest cumulative declines were recorded in materials recovery, which fell by 6.7 per cent, and the manufacture of machinery and equipment, motor vehicles and other transport equipment, which decreased by 6.2 per cent.