Seasonal improvements characterizing Latvia's business sector
Latvia's Economic Indicators Show Mixed Results in May 2025
In May 2025, Latvia's economic landscape presented a mixed picture, with some sectors showing signs of growth and others experiencing a decline. The Central Statistical Bureau of Latvia or a related government economic institution is likely responsible for the measurements.
The economic sentiment indicator in Latvia saw an increase, climbing from 98.1 in April to 98.6 in May. This rise indicates a more optimistic outlook among businesses.
However, the total uncertainty indicator experienced a significant jump, increasing by 0.4 percentage points due to a rise in consumers' assessments. This increase suggests that despite the overall positive sentiment, there remains a degree of apprehension among consumers.
The manufacturing sector saw a notable improvement, with the seasonally adjusted confidence indicator rising to -3.8 in May, a rise of 3.0 percentage points compared to the previous month. This marked the highest value since July 2022, indicating a more positive outlook in the manufacturing industry.
On the other hand, the retail trade sector experienced a decline, with the seasonally adjusted confidence indicator deteriorating by 1.7 percentage points in May compared to the previous month, reaching a value of 1.0.
The construction sector also showed improvement, with the seasonally adjusted confidence indicator rising by 3.0 percentage points in May compared to April, marking the highest value since February 2022. Interestingly, the seasonally unadjusted confidence indicator in construction reached a positive value (1.9) for the first time since July 2021, signifying a positive trend in the sector.
The services sector, however, experienced a decline, with the seasonally adjusted confidence indicator dropping by 1.2 percentage points compared to April, reaching a value of 1.6.
The business environment in the services sector deteriorated in May compared to April. However, the Economic Uncertainty Indicator in all four business sectors surveyed decreased in May 2025. The most rapid fall was in manufacturing (5.3 percentage points). Out of 23 manufacturing sectors surveyed in May, the business environment improved in 11 sectors compared to the previous month, worsened in 11 sectors, and remained unchanged in one sector.
In construction, the Economic Uncertainty Indicator dropped by 2.8 percentage points in May 2025, while in retail trade, it dropped by 2.4 percentage points. The Employment Expectations Indicator in May 2025 increased to 101.2, exceeding the long-term average value (100), suggesting a positive outlook for employment.
The search results do not contain specific information on which institution is responsible for measuring economic uncertainty in Latvia in May 2025. However, based on general knowledge, such measurements are typically conducted by national statistical offices or economic research institutes, so it is likely that the Central Statistical Bureau of Latvia or a related government economic institution is responsible.
The seasonally unadjusted confidence indicator in construction has been improving monthly since the beginning of the year, suggesting a positive trend in the sector. Overall, while some sectors in Latvia's economy are experiencing growth, others are facing challenges. The trends observed in May 2025 provide valuable insights into the country's economic landscape.
