The Economic Sentiment Indicator (ESI) eased 3.5 points to 104.2, authors of the economics department at the University of Cyprus said. It was still running above the long-term average, it said.
The ESI gauges sentiment among consumers, retail, manufacturing and the construction industry on the outlook for the next three months to a year.
Respondents in the retail sector said they had a more negative outlook on sales for the next three months, impacting turnover, the survey said.
There was a marginally better picture among consumers because fewer respondents had a negative take on expectations, it said.