Strong output in the utilities sector and localized manufacturing growth pushed Cyprus’ industrial production up by 4.7% year-on-year in March 2026.
Fresh data from the Statistical Service of Cyprus (Cystat) reveals that the country’s Industrial Production Index hit 116.7 points (benchmarked against a 2021 baseline of 100). This strong monthly surge capped off a highly positive first quarter for the year, with total production rising 1.5% compared to the opening three months of 2025.
Sector Performance: Utilities Take the Lead
The overall industrial expansion was heavily anchored by the energy and mining sectors, which easily countered minor contractions elsewhere in the economy.
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Electricity Supply: Recorded the single most powerful year-on-year trajectory, skyrocketing by 19.0% in March.
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Mining and Quarrying: Posted solid growth, expanding by 9.2% over the same period last year.
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Water & Resource Recovery: Logged an increase of 3.9%, driven by municipal water distribution and materials recycling.
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Manufacturing Baseline: Maintained stable momentum with a net increase of 2.8%.
A Closer Look at Manufacturing Winners and Losers
Performance across specific factory sub-sectors varied significantly. Heavy manufacturing and consumer goods saw strong gains, while vehicle assembly and electronics dipped:
| Manufacturing Segment | March 2026 Change (YoY) | Market Status |
| Basic & Fabricated Metals | +8.5% | Top Manufacturing Performer |
| Rubber & Plastic Products | +7.1% | Strong Sector Demand |
| Non-Metallic Mineral Products | +4.5% | Steady Growth |
| Food, Beverages & Tobacco | +3.5% | Stable Consumer Demand |
| Furniture & Machinery Repair | -3.9% | Sector Contraction |
| Heavy Machinery & Transport Vehicles | -4.8% | Deepest Monthly Slump |
First Quarter Trajectory Review
Taking a broader view of the entire January-to-March 2026 period, water collection, treatment, and supply registered the most robust cumulative expansion at 10.1%. It was closely trailed by the first-quarter electricity supply grid at 7.4% and fabricated metals at 6.4%.
Conversely, long-term headwinds persisted for furniture makers (down 6.2% over the quarter), heavy machinery and transport engineering (down 5.4%), and the textiles, apparel, and leather product category, which dropped by 4.7% over the same three-month window.
Source: Stockwatch.com.cy