The Portuguese economic climate indicator dropped to 2.2 in December of 2018 from 2.3 in the previous month, marking the lowest reading since April. Sentiment deteriorated among service providers (12.2 from 12.3 in November) and traders (3.4 from 3.8), namely wholesalers (4.7 from 5.5) while it rose for retailers (2.2 from 1.8). In contrast, confidence improved for manufacturers (-0.6 from -1.0) and constructors (-8.6 from -10.3). Business Confidence in Portugal averaged 1.63 Index Points from 1989 until 2018, reaching an all time high of 5.30 Index Points in March of 1989 and a record low of -3.90 Index Points in November of 2012.
Business Confidence in Portugal is expected to be 1.90 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Business Confidence in Portugal to stand at 1.50 in 12 months time. In the long-term, the Portugal Business Confidence is projected to trend around 1.50 Index Points in 2020, according to our econometric models.