Business environment improved in March in Latvia

According to Central Statistical Bureau business tendency surveys data published on 31st March, the business environment in all economic activities has improved in March 2026 – in manufacturing, construction, retail trade and services sector. 

In the retail trade and services sector, the business environment was positive, but in manufacturing and construction – negative.

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.

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.

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.

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.

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 indicatorin Latvia comprised 101.0, (100.8 – in the previous month). Also Employment Expectations Indicator in March is exceeds long-term average value and has increased to 101.1.