Business sentiment remains mixed in Latvia

“In retail trade, despite the modest turnover indicators in the previous months, business environment since August is positive and continues to improve. In services sector as a whole environment is also good, compared to other large economic sectors. Moreover, economic uncertainty in services sector (as perceived by entrepreneurs) is significantly lower than in other sectors. In manufacturing business environment has been permanently negative, and in October it was above zero in only one sub-sector (installation of machinery and equipment). The most pessimistic environment is in construction, where it has been below zero for years, however, the negative value has been reducing since July,” said Raimonds Lapiņš, Director General of the CSB.

In October 2024 the confidence indicator in retail trade was 5.2, according to seasonally adjusted data, and, compared to September, it has risen by 1.9 percentage points. In the services sector, the seasonally adjusted confidence indicator in October was 2.2 and business environment of entrepreneurs, compared to September, has worsened by 0.7 percentage points. 

In construction, according to seasonally adjusted data, the confidence indicator in October comprised – 11.4, which is an improvement of 1.1 percentage point as compared to the previous month. According to seasonally adjusted data, the confidence indicator in manufacturing in October comprised – 6.7. Compared to September, it has increased by 0.7 percentage points.

The Economic Uncertainty Indicator, which describes the predictability of socio-economic situation in the country, in October, compared to September, has increased in construction and retail trade, reduced in manufacturing, but in services sector has not changed significantly. In turn, assessment of consumers in October, the same as in previous two months, is negative (- 0.8), thus, more than a half of consumers assess the socio-economic situation as predictable.

Tell us about a mistake