In April business environment improved in retail trade

Data of business tendency surveys¹ carried out by the Central Statistical Bureau (CSB) show that in April 2025, compared to March, business environment has improved in retail trade, worsened in construction, but in manufacturing and services sector remained without any significant changes.

Business environment is improving in retail trade

In April confidence indicator in retail trade was 3.1, according to seasonally adjusted data, and, compared to the previous month, it has risen by 1.0 percentage point.

Seasonal improvement in business environment in spring is characteristic to retail trade, reaching maximum annual values in May and June. Also this year confidence indicators in April, according to seasonally unadjusted data, have improved in all sub-sectors of retail trade. In retail sale of food products, non-food products and fuel business environment was positive (6.7, 9.5 and 14.3, respectively), however, in retail sale of food products confidence indicator is atypically low to the season. In sale of motor vehicles, where business environment is rather volatile, in April confidence indicator rose rapidly to 9.8 and reached its highest value since August 2023. Also in sale of motor vehicle parts and accessories, as well as maintenance and repair of motor vehicles business environment has improved and is positive (4.4).

In services sector business environment without any significant changes

In the services sector, the seasonally adjusted confidence indicator in April amounted to 2.9 and business environment, compared to March, has worsened by 0.2 percentage points.

According to seasonally unadjusted data, the same as in all previous months of this year, the most optimistic in April were entrepreneurs in insurance sector, where confidence indicator rose to 37.0, which is the highest value since February 2022. Entrepreneurs in labour recruitment and provision of personnel (21.3), programming and broadcasting activities (19.4), as well as advertising and market research sector (18.0) were among the most optimistic in April. In total, out of 30 services sub-sectors surveyed in April only in 6 sectors business environment was negative. The most pessimistic were entrepreneurs in warehousing and support activities for transportation (- 8.2), as well as land transport sectors (- 6.6). Atypically low to the season, negative environment indicator remained in catering (- 4.1).

Business environment in construction is slightly worsening

Typically low confidence indicator in construction, according to seasonally adjusted data, was - 10.7 in April and, compared to March, it has dropped by 2.0 percentage points.

Due to the seasonality of construction sector, business environment usually reaches its lowest value of the year in December, but at the beginning of the year it improves significantly. Also this year, according to seasonally unadjusted data, since the beginning of the year business environment is improving monthly. In April, compared to March, confidence indicator in specialized construction activities has increased by 4.0 percentage points and in construction of buildings by 1.5 percentage points. In turn, in civil engineering business environment is positive for the third consequent month (7.6), even though it worsened by 2.6 percentage points.

Business environment in manufacturing remains unchanged

In April confidence indicator in manufacturing was - 5.3, according to seasonally adjusted data, and, compared to the previous month, it hasn’t changed.

Seasonally unadjusted data show that out of 23 manufacturing sectors surveyed in April, compared to the previous month, in 12 sectors business environment has improved, in 10 – worsened, but in one – hasn’t changed.

Business environment improved in the following by their share most significant manufacturing sub-sectors: manufacture of wood and of products of wood (by 3.0 percentage points), manufacture of non-metallic mineral products (2.8 percentage points) and manufacture of chemicals and chemical products (1.4 percentage points). In manufacture of beverages confidence indicators remain high already since the beginning of the year (11.1 in April). During the last months increasingly optimistic were entrepreneurs in manufacture of metal products (25.0 in April). In turn, business environment has worsened in manufacture of food products (by 1.1 percentage point), manufacture of computer, electronic and optical products (1.6 percentage points) and manufacture of fabricated metal products, except of machinery and equipment (1.3 percentage points).

Insufficient demand mostly limits enterprises in industry

The largest share of enterprises, who have not felt any factor limiting economic activity in April, were in services sector (39.4 %), but the smallest – in retail trade (24.1 %). In April, share of such enterprises in manufacturing comprised 32.6 %, in construction – 25.7 %. In manufacturing, construction and services sector the most significant limiting factor in April was insufficient demand (42.4 %, 36.8 % and 31.0 %, respectively), however, compared to January, its significance has decreased in all three economic activities. Insufficient demand as a limiting factor in retail trade was mentioned by 32.4 % of enterprises, which is 2.4 percentage points less than in January. For traders, competition in trade sector is more important, which in April was mentioned by slightly more than a half of retailers (51.1 %). Despite the onset of spring, 26.7 % of construction enterprises indicated that their activity is limited by weather conditions, but in the opinion of builders, this has been the most favourable April for the sector in terms of weather conditions over the last three years.

In April 2025 economic sentiment indicator² in Latvia comprised 98.1, (98.3 – in the previous month). In turn, Employment Expectations Indicator, which during the last months has been fluctuating around long-term average value (100), fell to 99.9 in April.

¹ Business surveys in manufacturing, construction, retail trade and services sector are carried out by the CSB monthly, accordingly methodology of the Joint Harmonised EU Programme of Business and Consumer Surveys co-financed by the European Commission.

² Economic Sentiment, Employment Expectations Composite Indicators are calculated by the General Directorate of Economic and Financial Affairs of the European Commission (ECFIN) using the results of business tendency surveys conducted by the Member States, according to a common methodology.

Media requests:
Public Relations Section
E-mail: media@csp.gov.lv
Phone: +371 27880666

More information on the data:
Ieva Vanaga
Short-Term Business Statistics Section
E-mail: Ieva.Vanaga@csp.gov.lv
Phone: +371 67366738