Cyprus’ industrial production index experienced an annual decline of 2.4 per cent during February, according to a report from the state statistical service (Cystat).

The service reported that the index reached 108.4 units for the month, using 2021 as the base year set at 100 units, which marks a notable contraction compared to the figures recorded in February 2025.

Despite the monthly downturn, the cumulative performance for the period of January to February 2026 showed a slight increase of 0.1 per cent when measured against the same two months of the previous year.

A broad analysis of the data shows that the manufacturing sector registered a decrease of 1.2 per cent compared to the same month a year earlier.

More severe losses were felt in the electricity supply sector, which saw a double-digit tumble of 12.7 per cent, alongside a 2.1 per cent drop in mining and quarrying activities.

Conversely, the sectors of water supply and materials recovery provided a boost to the national figures by recording a positive change of 4.7 per cent.

Within the specific branch of manufacturing, the strongest growth was seen in the production of basic metals and fabricated metal products, which climbed by 5.5 per cent compared to February 2025.

The manufacturing of refined petroleum, chemicals, and pharmaceutical products also showed strength with a 3.3 per cent rise, followed by a 2.4 per cent increase in wood and cork products.

Significant downward pressure came from the furniture and machinery repair industries, which suffered a combined contraction of 8.0 per cent.

Other areas of weakness included the manufacturing of motor vehicles and transport equipment, which fell by 7.4 per cent, and the textile and leather sector, which decreased by 5.4 per cent.

When looking at the broader year-to-date performance for the first two months of 2026, the most substantial growth was found in water collection, treatment, and supply at 7.6 per cent.

The metals and pharmaceutical sectors also maintained their upward momentum during this two-month window, posting gains of 5.5 per cent and 3.0 per cent respectively.

Electricity supply, despite its poor performance in February alone, remained up by 2.7 per cent for the total January to February period.

On the other hand, the mining and quarrying sector has faced a difficult start to the year, with production down by 9.2 per cent compared to the first two months of 2025.

Furniture manufacturing and the repair of machinery continued to struggle with a 6.9 per cent year-to-date decline, mirroring the trends seen in the transport equipment category.

Finally, the production of wearing apparel and leather products remained in negative territory, showing a 5.3 per cent drop for the start of the 2026 calendar year.