In March business environment has improved in all economic activities

According to Central Statistical Bureau business tendency surveys¹, the business environment in all economic activities has improved in March 2026 – in manufacturing, construction, retail trade and services sector. In retail trade and services sector business environment was positive, but in manufacturing and construction – negative.

Business environment in manufacturing continues to improve

Confidence indicator in manufacturing, according to seasonally adjusted data, comprised -2.9 in March. As compared with the previous month, it has grown by 0.9 percentage points reaching its highest value since May 2022. Out of 23 manufacturing sectors surveyed in March, compared with February, confidence indicator increased in 15 sectors, reduced in seven, but in one – remained unchanged.

Business environment has improved by their share in the following significant manufacturing sectors: manufacture of food products (by 2.7 percentage points), manufacture of fabricated metal products, except machinery and equipment (5.8 percentage points) and manufacture of computer, electronic and optical products (15.4 percentage points). In turn, business environment has worsened in manufacture of wood and of products of wood and cork (by 3.8 percentage points).

In services sector business environment tends to improve slowly

In the services sector, according to seasonally adjusted data, confidence indicator in March was 4.3, and the overall business environment (with slight month-to-month fluctuations) tends to improve slowly.

Excluding seasonal impact on business indicators, as usual, the most optimistic in March were enterprises in financial sector (23.6) and insurance (34.2). High business environment indicators were also recorded in rental and leasing services (11.7) and building maintenance services (13.4). In turn, the lowest confidence indicators in March were recorded in water transport (- 10.3), warehousing and support activities for transportation (- 10.5), as well as security services (- 9.5).

In total, out of 30 services sub-sectors surveyed environment of 19 was positive, but of 11 negative.

Business environment in retail sale of food products is improving, but of non-food products – slightly worsening

In retail trade, the business environment has stabilised in recent months, and confidence indicator is fluctuating slightly above zero. In March, according to seasonally adjusted data, confidence indicator was 3.4, which is 1.1 percentage point more than in February.

An increase in the overall sector confidence indicator, compared with the previous month, was mostly affected by improvement of business environment in retail sale of food products (by 3.0 percentage points). Business environment has also improved in sale of motor vehicles, related parts and accessories and repair of motor vehicles (by 4.5 percentage points). In turn, retailers of fuel and non-food products have been more pessimistic than in February. Confidence indicators in these sub-sectors have gone down by 1.0 and 2.8 percentage points, respectively.

In construction, the highest confidence indicator in the last 7 years

According to seasonally adjusted data, confidence indicator in March was - 3.3 and, compared with the previous month, it has improved fairly rapidly by 3.6 percentage points, reaching the highest value since May 2019.

Business environment across all construction sub-sectors is still negative, however, compared with February, it has improved everywhere: in construction of buildings by 0.4 percentage points, in civil engineering by 5.1 percentage points, but in specialized construction activities by 2.9 percentage points.

Total economic uncertainty in March has reduced

Total Economic Uncertainty Indicator, which describes the predictability of socio-economic situation in the country, amounted to 14.5 in March, which, compared with February, is 0.2 percentage points less.

As perceived by enterprises, compared with the previous month, economic uncertainty has increased rapidly in retail trade, slight rise was also observed in manufacturing and the services sector, but decrease was recorded in construction. Drop of the overall indicator was also significantly affected by a decrease of uncertainty in assessment of consumers²; in March, this indicator reduced by 4.1 percentage points compared with the previous month.

In March 2026 economic sentiment indicator³ in Latvia comprised101.0, (100.8 – in the previous month). Also Employment Expectations Indicator in March is exceeds long-term average value and has increased to 101.1.

Methodological information:

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 Consumer survey is carried out monthly by the enterprise Latvijas Fakti accordingly methodology of the Joint Harmonised EU Programme of Business and Consumer Surveys co-financed by the European Commission.

³ 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