In construction and manufacturing business environment is permanently negative, without any significant changes.
Business confidence indicators characterize the general situation in the sector and they are acquired by carrying out business surveys in industry, construction, retail trade and services sectors. If the indicator is above zero, the business environment is positive, if it is below zero – the business environment is negative.
In January 2024 confidence indicator in retail trade was 0.6, according to seasonally adjusted data, and, compared to December 2023, it has decreased by 3.1 percentage points.
In the services sector, the seasonally adjusted confidence indicator in January was 1.8 and business environment, compared to December, has worsened by 0.8 percentage points.
In construction, according to seasonally adjusted data, confidence indicator in January comprised - 11.0, which is an increase of 0.5 percentage points as compared to the previous month. Construction activity in January was mostly affected by bad weather conditions and insufficient demand (indicated by 61 % and 31 % of respondents, respectively). Lack of labour force and financial difficulties as a limiting factor was indicated by 17 % and 13 % of construction enterprises, respectively. Lack of materials or equipment was indicated by 5 %, but 14 % of entrepreneurs surveyed did not feel any factors limiting construction activity in January.
According to seasonally adjusted data, confidence indicator in manufacturing in January comprised - 8.2. As compared to December, it has increased by 1.2 percentage points.
In January 2024 economic sentiment indicator3 in Latvia comprised 96.4, (in the previous month – also 96.0).
