In July business environment improved in manufacturing, retail trade and services sector

Data of business tendency surveys¹ carried out by the Central Statistical Bureau (CSB) show that in July 2026 business environment has improved in manufacturing, retail trade and services sector, but worsened in construction.

Business environment in sale, maintenance and repair of motor vehicles is improving rapidly

After a temporary deterioration in the previous month, in July business environment in retail trade has risen by 1.9 percentage points and reached value of 2.3.

Changes in confidence indicator both in retail trade of food and of non-food products, compared to the previous month, were minimal – for non-food products the rise comprised 0.1 percentage point, but in retail trade of food products the drop comprised 0.5 percentage points. However, in sale of motor vehicles as well as related parts and accessories and repair of motor vehicles business environment in July improved rapidly and confidence indicator reached its highest value (11.0) since April 2023. In retail trade of fuel, where confidence indicator in June reduced rapidly to negative value – 16.4, in July it has improved by 3.5 percentage points, however, it still retains a value of -12.9, which is atypically low to the sector.

Business environment in manufacturing remains stable

Confidence indicator in manufacturing, according to seasonally adjusted data, comprised– 3.4 in July. Compared with the previous month, it has increased by 0.7 percentage points.

Out of 23 manufacturing sectors surveyed in July, compared with June, in 13 sectors confidence indicator increased, in 10 – reduced. Environment improved in the following by their share most significant manufacturing sub-sectors: manufacture of food products (by 4.7 percentage points) and manufacture of fabricated metal products, except machinery and equipment (0.5 percentage points). While drop in confidence indicator in July was registered in manufacture of wood and products of wood and cork, except furniture (by 2.9 percentage points), as well as manufacture of computer, electronic and optical products (2.5 percentage points).

Environment in services sector continues to improve slowly

In the services sector, the seasonally adjusted confidence indicator in July amounted to 3.5 and, compared to June, it has increased by 1.5 percentage points.

Excluding seasonal impact on business indicators, the most optimistic in July were enterprises in insurance sector (27.9). High confidence indicators were also recorded in financial services (24.7) and rental and leasing services (23.6). But the lowest confidence indicators in July were in security and investigation services (- 19.3), publishing (- 12.4) as well as in land transport (- 9.6).

Overall, in July, out of 30 services subsectors surveyed, environment was positive in 18 and negative in 12. Compared with the previous month, environment has improved in 16 subsectors and worsened in 14.

Downward trend in business environment among construction enterprises

In construction seasonally adjusted confidence indicator in July was - 10.4 and, after a slight improvement in the previous month, it has reduced again reaching its lowest value since May 2025. Compared to the previous month, business environment has worsened in all construction subsectors: construction of buildings by 1.1 percentage point, but more clearly in engineering and specialised construction activities (4.4 and 2.2 percentage points, respectively).

In July economic uncertainty in business has decreased

In July, compared to June, economic uncertainty in business has decreased in construction, manufacturing and retail trade, reaching its lowest value of this year in all three sectors (14.7, 19.4 and 18.9, respectively), in turn, compared to the previous month, economic uncertainty level in services sector has increased slightly, even though it is still significantly lower than in the three previously mentioned sectors of economic activity (12.6).

In July 2026 economic sentiment indicator² in Latvia comprised 100.3, and after a break of three months, it has slightly exceeded the long-term average value again. In turn, Employment Expectations Indicator in July has reduced to 99.0, falling below the 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 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