RIGA, June 30 (LETA) - Data of business tendency surveys carried out by the Central Statistical Bureau (CSB) show that in June 2025, compared to May, business environment has improved in manufacturing, and it was at its highest level during the last three years.

In general, atypically high value in the sector also remained in construction. At the same time business environment in June has slightly worsened in retail trade and services sector.

Confidence indicator in manufacturing, according to seasonally adjusted data, comprised - 3.6 in June. Compared to the previous month, it has increased by another 0.2 percentage points, preserving the highest value during the last three years.

Seasonally unadjusted data show that out of 23 manufacturing sectors surveyed in June, compared to the previous month, in 8 sectors business environment has improved, in 13 - worsened, but in two hasn’t changed.

According to seasonally unadjusted data, in June, compared to the previous month, business environment has risen in the following by their share most significant manufacturing sectors: manufacture of wood and of products of wood and cork (by 1.5 percentage points), manufacture of fabricated metal products, except machinery and equipment (1.3 percentage points) and manufacture of non-metallic mineral products (3.6 percentage points). In turn, business environment has worsened in manufacture of food products (by 1 percentage point), manufacture of computer, electronic and optical products (3.3 percentage points) and manufacture of beverages (8.8 percentage points).

Typically low confidence indicator in construction, according to seasonally adjusted data, was - 8.2 in June. Compared to May, it has reduced by 0.6 percentage points, in general preserving atypically high value in the sector.

Due to the seasonality of construction sector, business environment usually reaches its highest value of the year in April or May. Also this year, according to seasonally unadjusted data, since the beginning of the year business environment is improving monthly. In May it reached maximum value 1.9, but in June confidence indicator value reduced and dropped slightly below zero (- 0.3). The reduction was determined by the drop in construction of buildings and civil engineering (by 1.1 and 6.7 percentage points, respectively), but business environment in specialized construction activities still continues to improve in also June, for the first time over the last two years rising above zero (3.2).

In June confidence indicator in retail trade was 0.4, according to seasonally adjusted data, and, compared to the previous month, it has reduced by 0.5 percentage points.

Seasonal improvement in business environment in spring is characteristic to retail trade, reaching the maximum values in annual terms in May and June. In June this year, compared to the previous month, confidence indicators, according to seasonally adjusted data, continued to increase in retail trade of food products and fuel (by 2.2 and 2.7 percentage points, respectively), but in retail sale of non-food products business environment, which reached its maximum value of 9.5 in April, is worsening for the second consequent month and is only 4.6 in June. Confidence indicator has also fallen in sale of motor vehicles, which is a worsening of 2.5 percentage points, compared to May. The sharpest worsening of environment was observed in sale of related parts and accessories of motor vehicles, maintenance and repair of motor vehicles, where, after a break of two months, confidence indicator is negative again (- 1).

In the services sector, the seasonally adjusted confidence indicator in June was 1, and business environment, compared to May, has worsened by 0.6 percentage points.

The most optimistic service providers in June are among sectors with seasonal increase in economic activity during the summer: accommodation (38.9), rental and leasing services (38.5), travel agency and tour operator services (20.5). Insurance (22.2) and information services (20.8) are also among the most optimistic sectors. The lowest confidence indicator (- 10.5) in June was registered in motion picture, video and television program production, sound recording and music publishing. The same as in the previous month, among the most pessimistic were entrepreneurs in warehousing and support activities for transportation (- 10), as well as land transport sectors (- 6.3), also in legal and accounting services confidence indicator, compared to May, has dropped by 6.7 percentage points and is negative (- 7.4).

Total Economic Uncertainty Index, which describes the predictability of socio-economic situation in the country, amounted to 12.7 in June, which, compared to the previous month, is 3.7 percentage points less. Reduction of Uncertainty Index was mostly affected by the volatile assessment of consumers. Economic uncertainty (as perceived by entrepreneurs), compared to the previous month, has decreased in retail trade, but slightly increased in manufacturing, construction and services sector.

In June 2025 economic sentiment indicator3 in Latvia comprised 99.1, (98.6 - in the previous month). In turn, Employment Expectations Indicator, which has been volatile since the beginning of the year, after a rise in the previous month, has fallen to 100.1 in June, again.