RIGA, March 31 (LETA) - Data of business tendency surveys carried out by the Central Statistical Bureau (CSB) show that in March 2025, compared to February, business environment has improved in manufacturing and construction, but slightly worsened in retail trade and services sector.

Typically low confidence indicator in construction, according to seasonally adjusted data, was - 8.6 in March and, compared to February, it has risen by 2 percentage points.

Due to the seasonality of construction sector, business environment usually reaches its lowest value of the year in December, but during the first months of the year it improves significantly. Also this year, according to seasonally unadjusted data, since the beginning of the year business environment is improving monthly. In March, compared to February, confidence indicator in specialized construction activities has increased by 6.7 percentage points and in construction of buildings by 4.1 percentage points. In turn, in civil engineering business environment is positive (10.2) for the second consequent month, and in March has reach its highest value since April 2023.

After a temporary deterioration in January, during the last two months business environment in manufacturing, according to seasonally adjusted data, improved again, even though it is still negative (- 5.2).

Seasonally unadjusted data show that out of 23 manufacturing sectors surveyed in March, compared to the previous month, in 11 sectors business environment has improved, in 10 - worsened, but in two hasn’t changed.

In March, compared to February, business environment has improved in one by its share largest manufacturing sub-sectors - manufacture of food products. Even though business indicator in this sector is still slightly below zero (- 0,3), it has reached its highest value since September 2020. Confidence has increased rapidly also in manufacture of chemicals and chemical products, reaching its highest value (6.2) during the last two years. Particularly optimistic in March, the same as in the previous month, were entrepreneurs in manufacture of metal products (20.8), but in the manufacture of beverages high confidence indicators remained for the third consequent month (13.5 in March). In turn, compared to February, business environment in manufacture of wood and of products of wood worsened (by 1.9 percentage points).

In March confidence indicator in retail trade was 2.0, according to seasonally adjusted data, and, compared to the previous month, it has reduced by 0.9 percentage points.

Seasonal improvement in business environment in spring is characteristic to retail trade, reaching maximum annual values in May and June. Also this year confidence indicators, according to seasonally unadjusted data, have improved in all sub-sectors of retail trade. Both in food and non-food retail trade, as well as in retail trade of fuel business environment was positive (1.9, 0.5 and 8.2, respectively), but in sale of motor vehicles and related parts and accessories and repair and maintenance of motor vehicles, despite of the improvement, confidence indicators still remain negative (- 6.0 and - 6.5, respectively).

In the services sector, the seasonally adjusted confidence indicator in March was 3.0, and business environment, compared to February, has deteriorated by 0.7 percentage points. The same as in the previous month, entrepreneurs in insurance sector (25.9), motion picture, video and television program production, sound recording and music publishing (10.1), providers of information services (13.7), as well as labor recruitment and provision of personnel (14.2) were among the most optimistic in March, according to seasonally unadjusted data.

In turn, business environment in postal and courier activities sector is worsening rapidly (- 19.2). Since October 2024 negative business environment indicators were also in warehousing and support activities for transportation and catering (- 11.7 and - 10.8 in March, respectively). In total, out of 30 services sub-sectors surveyed in March business environment of 17 sectors was positive, of 12 - negative, but in one sector (publishing) confidence indicator equaled zero.

In March 2025 economic sentiment indicator in Latvia comprised 98.3, (the same as in the previous month). In turn, Employment Expectations Indicator was 101.3 and, after a temporary fall in the previous month, exceeds long-term average value again.

Economic Uncertainty Indicator, which describes the predictability of socio-economic situation in the country, in March, compared to the previous month, has decreased in construction and services sector (by 0.9 percentage points in each), but in manufacturing and retail trade it has increased (by 1 percentage point and 3 percentage points, respectively).