Portugal Business Climate Hovers Around 9-Month Low

Business confidence in Portugal stood at 2.7 in May 2026, the lowest since June 2025, unchanged from the revised reading in April. Sentiment deteriorated further among manufacturers (-3.5 vs -2.8 in April), but improved for service providers (8.3 vs 7.9), constructors (3.8 vs 2.9) and traders (3.3 vs 3.2).

Business confidence in Portugal held steady at 2.6 in April 2026, unchanged from March and remaining near its lowest levels since mid-2025. Sentiment deteriorated among manufacturers (-2.7 vs -2.4), wholesalers (2.3 vs 2.4) and retailers (3.9 vs 4.0), while improving in construction (2.9 vs 2.6) and services (6.2 vs 5.0).

Business confidence in Portugal fell to 2.6 in March 2026, marking a five-month low, down from 2.9 in February. Entrepreneurs’ price expectations rose across all sectors driven by tensions in non-EU markets, particularly in manufacturing, where expectations reached their highest level since October 2022. Trade confidence has declined over the past four months, reflecting weaker expectations for activity in the next three months and trade volumes. Similarly, construction confidence has fallen for a second consecutive month, weighed down by negative employment outlooks. In contrast, services sentiment and manufacturing confidence have improved over the past two months, supported by stronger business activity and positive assessments of finished goods stock and global demand.