The trend of Latvian businessmen this fall is the best in the last five years, according to even the Citadele Index, even before the crisis for large companies.
The mood of Latvian entrepreneurs in the autumn improved, and the Citadele Index is 52.4 points, compared to the index of 51.3 in the previous quarter. This is the most optimistic mood of entrepreneurs since the beginning of 2013, when the Citadele index was the same.
In addition, the mood of big businessmen in Latvia has reached unprecedented optimism and is at pre-crisis level. This year, with over 250 employees, Citadele Index has 62.5 points, the highest rate since the end of 2006, when it was 63.5.
Small and medium companies are more cautious. At the rate of 57, managers with the number of employees from 50 to 249 are optimists.
The indicator for small enterprises employing from 10 to 49 employees is 52.6, and the optimism of microenterprises is more cautious – 50.6 points.
Martins Āboliņš, economist at Citadele Bank, says that the growing economy and business optimism are generally good news. However, it should be noted that, as you can see, small companies still do not feel this positive wave in the economy.
Finally, all indexing sections are positively rated – domestic and industry activity, competition in the sector, company turnover, profitability, financial situation, number of employees and investments.
In the last quarter, the entrepreneurs' assessment of profitability and financial situation was still pessimistic. Similarly, the mood of companies in the trade and services sector is improving, while production and construction, which have long been the most optimistic sectors in Latvia, are less optimistic.
Optimistic moods are observed in all areas of the economy, and in the last quarter there was a significant improvement in sentiment in the services sector, with the index rising to 52.9.
A similar level of optimism with the 52.6 index is in construction, while the managers of the manufacturing and trading sectors are slightly less optimistic – their index amounts to 52.7 and 51.4, respectively.
The IT industry is the most optimistic about services, and cautious optimists are providers of education, transport and storage services.
In general, the mood has improved both on the export market and on the domestic market. The exporters' index is 55, and the optimism of non-exporting companies is 51.26 points.
Citadele Index is a survey that Citadele Bank has carried out in Latvia since 2004. A quarterly survey is conducted, covering 750 business owners and their directors.
Surveys and data collection are provided by the market and the SKDS public opinion research center. The study involved producers, distributors, construction companies and service providers from all regions of Latvia.