According to the Cyprus Statistical Office, in June 2021, the industrial turnover index reached 151.3 units (2015 base = 100), an increase of 15.1% compared to June last year.
This is a new historical record for the Index in June and the highest level of the Index in the last 22 months (since August 2019).
From January to June 2021, the index recorded an increase of 10.6% compared to the corresponding period last year.
The service cites some data regarding the production of industrial materials: the index for June 2021 reached 176.0 units, an increase of 25.3% compared to June 2020.
Also, growth was noted in the sectors of mining and quarrying (7.0%), power supply (31.5%), water supply and disposal of materials (44.7%).
It should be noted that in the manufacturing sector in June 2021, compared to the corresponding month of 2020, an increase was also recorded in almost all types of economic activity.
The index in the woodworking industry increased by 21.1%, in the production of basic metals and metal products - 19.1%, in the production of rubber and plastics - 3.7%, in the production of furniture, repair of machinery and equipment - by 2.3 %, as well as in the production of electronic and optical products and electrical equipment - by 2.0%.
According to the Statistics Service, the only activity that saw a decline was the production of refined products and chemicals, as well as pharmaceuticals (-0.2%).
We would like to remind that earlier the index of producer prices in construction also increased significantly in Cyprus.
The producer price index covers all stages of production: raw materials, intermediate stages, finished goods, as well as all sectors. Thus, its main difference from the consumer price index is that it covers only goods, not services, and at the wholesale level of their implementation.
The rise in the producer price index may be a harbinger of another rise in property prices.
There is no doubt that this trend will have a negative impact on the Cyprus property sector. A number of developers were already forced to raise prices for new buildings by 10-15% due to a sharp rise in prices for building materials.
You can find profitable options for buying real estate in Cyprus on the DOM Real Estate Portal. The website also has a large number of rental properties - both residential and commercial real estate. Choose and contact professionals who will help you make the right choice!