In April business environment positive in retail trade and services sector

Data of business tendency surveys¹ carried out by the Central Statistical Bureau (CSB) show that in April 2026 business environment is positive in retail trade and services sector, but negative – in manufacturing and construction.

Business environment remains positive in retail trade

In April, according to seasonally adjusted data, confidence indicator in retail trade was 1.4, which is 1.8 percentage points less than in March.

Business environment both in retail trade of food and of non-food products remained positive (3.0 and 2.0, respectively), even though confidence indicators, compared with the previous month have gone down slightly. Business environment in retail trade of fuel was negative (- 3.5) and, compared with March, it has worsened by 1.3 percentage points. In turn, confidence indicator in sale of motor vehicles, related parts and accessories is positive (4.3) and, compared with the previous month, has improved by 4.5 percentage points.

In services sector business environment is worsening, however, remains positive

In the services sector, the seasonally adjusted confidence indicator in April amounted to 1.5 and, compared to March, it has reduced by 2.7 percentage points.

Excluding seasonal impact on business indicators, as usual, the most optimistic in April were enterprises in financial sector (25.3). High business environment indicators were also recorded in information services (14.4), rental and leasing services (9.1) as well as computer programming (9.3). But the lowest confidence indicators in April were in security services (- 11.9), warehousing and support activities for transportation (- 11.7) as well as in land transport (- 9.3). Sharp worsening in business environment in April was observed in insurance sector, where confidence indicator, compared with the previous month, reduced rapidly by 28.3 percentage points, reaching the lowest value since September 2022.

Overall, in April, out of 30 services subsectors surveyed, environment was positive in 18 and negative in 12. Compared with the previous month, environment improved in 11 subsectors but worsened in 19.

Environment in manufacturing is slightly worsening, but remains stable

Confidence indicator in manufacturing, according to seasonally adjusted data, comprised - 3.6 in April. Compared with the previous month, it has decreased by 0.6 percentage points, but retains the stable level of the previous year.

Out of 23 manufacturing sectors surveyed in April, compared with March, confidence indicator increased in 12 sectors, reduced in 10, but in one – remained unchanged. The overall worsening of the environment is determined by the fact that confidence indicator has reduced in all by their share most significant manufacturing sub-sectors: manufacture of food products (by 4.5 percentage points), manufacture of wood and of products of wood and cork (0.7 percentage points), manufacture of computer, electronic and optical products (6.2 percentage points) and manufacture of fabricated metal products, except machinery and equipment (1.9 percentage points).

Business environment in construction is slightly worsening

In construction, after a fairly rapid improvement in business environment in the previous month, the confidence indicator decreased in April by 0.9 percentage points and remained negative (- 4.5). In construction of buildings and specialized construction activities reduction was minimal (by 0.3 percentage points in both), but in engineering business environment has worsened by 4.0 percentage points.

The deterioration in environment also corresponds to an increase in the Economic Uncertainty Indicator in the construction sector, which in April, compared with March, rose by 7.0 percentage points, reaching 23.2.

Total economic uncertainty in April has increased

Total Economic Uncertainty Indicator, which describes the predictability of socio-economic situation in the country, amounted to 17.1 in April, which, compared with March, is 2.6 percentage points more.

As perceived by enterprises, compared with the previous month, economic uncertainty has decreased in retail trade and manufacturing, but increased in services sector, especially, in construction. The overall indicator has also been significantly affected by an increase in uncertainty in assessment of consumers². This indicator increased by 11.9 percentage points in April, compared with the previous month.

In April 2026 economic sentiment indicator³ in Latvia comprised 98.0 (100.8 in the previous month) and, after a fairly sharp decline, it has dropped below the long-term average value. Also Employment Expectations Indicator has slightly reduced in April and equals long-term average value 100.0.

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