CCLEI sees moderate growth in June

The annual growth rate of a leading indicator in Cyprus used to predict the future direction of economic movements, continued its upward trend, but on a moderate path, the University of Cyprus said in a report.

The Cyprus Composite Leading Economic Index (CCLEI), which is constructed and estimated by the university’s Economics Research Centre (CypERC), recorded a year-over-year increase of 2.3% in June 2025.

This increase follows year-on-year increases of 2.6% in May and 3.1% in April, according to report’s recently revised data.

This slowdown reflects the growth rates of its individual leading indicators, mainly the weakening of the year-on-year growth rate of the ESI in Cyprus, but also the deterioration of the economic climate in the euro area during the second quarter of 2025.

At the same time, weekly electricity production data, adjusted for temperature, recorded a decline in their annual growth rate.

However, the positive contribution of other indicators – such as property sales, tourist arrivals, transactions with Cypriot credit cards and retail trade sales volume – combined with the fall in the price of Brent crude oil, based on weekly data, strengthened the growth of CCLEI.

The slowdown in the positive growth rate of the CCLEI reflects the increasing pressures from the external economic environment, amidst increasing uncertainty.

“In particular, the geopolitical conflicts in the Middle East and their potential impact on international energy markets require close monitoring and careful assessment of the medium-term prospects of the Cypriot economy,” the report’s authors noted.