Business environment still positive in retail trade - Central Statistical Bureau

• Published date: 03 May 2022
• Publication title: LETA

RIGA, May 3 (LETA) - In April 2022 business confidence indicators were negative in construction, manufacturing and services sector, only business environment in retail trade still remains positive, according to data of business tendency surveys carried out by the Central Statistical Bureau.

In April 2022 confidence indicator in retail trade, according to seasonally adjusted data, comprised 2.2 percent. As compared to March, this indicator has dropped by 1.4 percentage points.

Business environment was positive in all sub-sectors of retail trade. According to seasonally unadjusted data, the most optimistic in April were entrepreneurs in trade of motor vehicles and parts thereof, maintenance and repair of motor vehicles (15.4 percent). As compared to the previous month, confidence indicators have risen also in retail sale of food and non-food products, reaching 7.3 percent and 12.6 percent. The only sector where business environment has worsened is retail sale of fuel - even though confidence indicator is positive (3.2 percent), compared to March, it has fallen by 5.9 percentage points.

In April, 28 percent of retail sellers indicated that they feel no factors restricting their economic activity, and this is the highest value of this indicator since October 2020.

Share of retail sellers having mentioned insufficient demand and lack of labor force as a factor restricting their economic activity continues to reduce. In April they comprised 25 percent and 13 percent, respectively. Financial difficulties restrict 10 percent of retail sellers. As usual, especially restrictive factor in retail trade is competition in their trade sector (39 percent). Even though in April there are no significant Covid-19 related retail trade restrictions, 6 percent of retail sellers still consider that factors related to Covid-19 still significantly restrict their economic activity. 13 percent of respondents mentioned that their activity is directly or indirectly negatively affected by war in Ukraine and related sanctions. 4 percent of respondents mentioned price rise as a restrictive factor, which is also partially related to the war.

In the services sector, the seasonally adjusted confidence indicator in April was negative (- 3 percent) and business environment of entrepreneurs has improved by 0.6 percentage points, compared to March.

s usual, indicators of environment differ significantly in various services sectors, and also trend of their changes differ depending on the specificities...