In August business environment improved in construction and services sector

Data of business tendency surveys¹ carried out by the Central Statistical Bureau (CSB) show that in August 2026 business environment has improved in construction and services sector, but in manufacturing and retail trade it has not changed significantly.

Environment in services sector continues to improve

In the services sector, the seasonally adjusted confidence indicator in August amounted to 5.5 and, compared to July, it has increased by 1.9 percentage points.

Excluding seasonal impact on business indicators, the most optimistic in August were enterprises in motion picture, video and television programme production, sound recording and music publishing (38.4). Also in the previous four months business environment in this sector was very good, but indicator of this month has reached the highest level since 2014, when this sector was included in services survey. High confidence indicators were also registered in financial services (22.9), provision of information services (22.2), as well as travel agency and tour operator services (21.3). However, for several months now, security and investigation services (−12.1) has been among the most pessimistic sectors. Low confidence indicators in August were also in catering (−8.9) and labour recruitment and provision of personnel (−9.6).

Overall, in August, out of 30 services subsectors surveyed, environment was positive in 21 and negative in 9. Compared with the previous month, environment has improved in 17 sectors and worsened in 13.

Environment in manufacturing is improving in six out of seven most important subsectors

In August, according to seasonally adjusted data, confidence indicator in manufacturing was negative (−3.3), but already for the third consecutive month gradual, slow improvement of the environment is being observed.

Out of 23 manufacturing sectors surveyed in August, compared with July, in 14 sectors confidence indicator increased, in 9 – reduced. Environment has improved in six out of seven by their share most significant manufacturing subsectors: manufacture of wood and products of wood and cork, except furniture (by 1.0 percentage point), manufacture of chemicals and chemical products (1.8 percentage points), manufacture of other non-metallic mineral products (2.5 percentage points), manufacture of fabricated metal products, except machinery and equipment (1.2 percentage points), manufacture of electrical equipment (4.4 percentage points), and, to a very small extent, also in manufacture of computer, electronic and optical products (0.1 percentage point). The only major subsector in which business environment has deteriorated was manufacture of food products (by 1.6 percentage points).

Business environment among construction enterprises remains volatile despite improvement this month

In construction seasonally adjusted confidence indicator in August was 7.6 and, after a drop in the previous month, it has increased again by 2.3 percentage points.

Compared with the previous month, when confidence indicators were particularly low, in August business environment has improved in all subsectors: in construction of buildings by 2.0, in specialised construction activities by 2.7 and in civil engineering by 4.8.

Environment in retail trade is positive, with minimal changes

In retail trade business environment was positive in August (2.5), and, compared with the previous month, it has not changed significantly – an improvement of only 0.1 percentage point.

Both in retail trade of food and of non-food products confidence indicators are positive, and, compared with July, have increased by 1.6 and 0.7 percentage points, respectively. In July, business environment had improved rapidly in sale of motor vehicles as well as related parts and accessories and repair of motor vehicles (11.0). In August it still remains very optimistic in sale and repair of motor vehicle parts and accessories (9.6), however, in sale of motor vehicles it has returned to a level close to its previous one, slightly above zero (1.2). In retail trade of fuel, the confidence indicator, which fell sharply to a negative value of −16.4 in June, improved by 3.5 percentage points in July. This positive trend continued in August, with a further increase of 2.6 percentage points. However, at −10.3, the indicator remains atypically low to the sector.

In August economic uncertainty in business continues to reduce

In August, compared with July, economic uncertainty in business reduced in manufacturing, retail trade and services sector, reaching its lowest value of this year in all three sectors (16.0, 15.0 and 10.0, respectively), in turn, in construction, where economic uncertainty reached its lowest value in July, the indicator has increased by 2.9 percentage points, reaching a value of 17.6.

In August 2026 economic sentiment indicator² in Latviacomprised 100.3, remaining at the level of the previous month. In turn, Employment Expectations Indicator in August has reduced to 98.3, which is the lowest value since September 2024.

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