The Latvian business environment showed mixed results in April 2026, remaining positive in the retail trade and services sectors while turning negative in manufacturing and construction, according to the latest business tendency survey from the Central Statistical Bureau (CSB).
- Economic Sentiment: The overall indicator dropped to 98.0, falling below the long-term average value.
- Sector Divergence: Financial services remained highly optimistic (25.3), while the insurance sector saw a sharp decline.
- Increased Uncertainty: The Total Economic Uncertainty Indicator rose to 17.1, driven largely by consumer assessments.
Retail Trade Performance
Seasonally adjusted data shows the confidence indicator in retail trade stood at 1.4 in April, a decrease of 1.8 percentage points from March.
The business environment for food and non-food products remained positive at 3.0 and 2.0, respectively, despite slight monthly declines. Conversely, the fuel sector remained negative at -3.5, worsening by 1.3 percentage points.
A bright spot appeared in the sale of motor vehicles and accessories, where the confidence indicator rose to 4.3, marking an improvement of 4.5 percentage points over the previous month.
Services Sector Trends
The services sector recorded a seasonally adjusted confidence indicator of 1.5, representing a reduction of 2.7 percentage points compared to March.
Enterprises in the financial sector were the most optimistic at 25.3. Other strong indicators were seen in information services (14.4), computer programming (9.3), and rental and leasing services (9.1).
The lowest confidence levels were found in security services (-11.9), warehousing and transport support (-11.7), and land transport (-9.3). The insurance sector experienced a rapid decline of 28.3 percentage points, reaching its lowest value since September 2022.
Out of 30 surveyed services subsectors, 18 remained positive and 12 were negative. However, the environment worsened in 19 subsectors compared to the previous month.
Economic Uncertainty and Sentiment
The Total Economic Uncertainty Indicator rose to 17.1 in April, an increase of 2.6 percentage points from March.
While enterprises perceived a decrease in uncertainty within retail trade and manufacturing, uncertainty increased in the services sector—particularly in construction. The overall indicator was further impacted by an 11.9 percentage point increase in consumer uncertainty assessments.
Latvia’s economic sentiment indicator fell to 98.0 from 100.8 in the previous month. Additionally, the Employment Expectations Indicator decreased slightly to 100.0, which currently equals the long-term average value.
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