Typically low confidence indicator in construction, according to seasonally adjusted data, was – 7.6 in May and, compared to April, it has risen by 3.0 percentage points, reaching the highest value since February 2022.
Due to the seasonality of construction sector, the business environment usually reaches its highest value of the year in April or May. Also this year, according to seasonally unadjusted data, since the beginning of the year business environment is improving monthly. For the first time since July 2021, in May seasonally unadjusted confidence indicator has reached a positive value (1.9).
In May confidence indicator in manufacturing, according to seasonally adjusted data, was – 3.8 and, compared to the previous month, it has risen by 3.0 percentage points, reaching the highest value since July 2022.
Seasonally unadjusted data show that out of 23 manufacturing sectors surveyed in May, compared to the previous month, in 11 – the business environment has improved, in 11 – worsened, but in one – hasn’t changed.
The confidence indicator in retail trade was 1.0, according to seasonally adjusted data, and, compared to the previous month, it has reduced by 1.7 percentage points.
Seasonal improvement in the business environment in spring is characteristic to retail trade, reaching the maximum values in annual terms in May and June.
In the services sector, the seasonally adjusted confidence indicator in May was 1.6, and business environment, compared to April, has deteriorated by 1.2 percentage points.
Economic Uncertainty Indicator, which describes the predictability of socio-economic situation in the country, in May, compared to the previous month, has decreased in all four business sectors surveyed. The most rapid fall (of 5.3 percentage points) is in manufacturing; in construction and services sector, the drop comprises 2.8 percentage points in each, but in retail trade it is 2.4 percentage points. However, as the assessment of consumers rose significantly, total uncertainty indicator increased by 0.4 percentage points in May.
In May 2025 economic sentiment indicator in Latvia comprised 98.6 (98.1 in the previous month). In turn, the Employment Expectations Indicator, which during the last months has been fluctuating around the long-term average value (100), in May increased to 101.2 again.
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