Portugal Business Confidence Falls for 2nd Month

The business confidence in Portugal edged down for a second straight month to 2.6 in October 2026, the lowest since May 2025, compared to 2.8 in September. Confidence fell in the services sector (7.5 vs 8.8) amid weaker outlook regarding the evolution of demand, and, significantly, assessments of the company’s activity as well as opinions on the order book. Sentiment also weakened in construction (4 vs 4.5), retail (1.6 vs 1.7) and remained subdued in manufacturing (-4.1 vs -4.3). For 2027, the majority of companies in the manufacturing industry (61.9%) and in the services sector (73.3%) anticipate that investment will stabilize compared to 2026.

Portugal’s business confidence indicator edged down to 2.8 in September 2026 from 2.9 in the previous month. Sentiment weakened in construction and public works (4.5 vs 4.9) after increasing for the previous six months, while confidence in overall trade fell sharply to 1.7 from 3, reflecting a marked deterioration among wholesalers (-1.5 vs -0.1) and retailers (4.9 vs 6.1). Meanwhile, confidence improved slightly among manufacturers (-4.3 vs -4.4) and in services (8.8 vs 8.4). Looking ahead, expectations for accelerating price growth increased across all sectors, particularly in manufacturing, services and trade, and more moderately in construction and public works.

Portugal's business confidence indicator rose to 2.9 in August 2026 from 2.8 previously, reaching the highest since February. Sentiment remained elevated among service providers (8.4 vs 8.4 in July) and improved further for constructors (4.9% vs 4.6). On the other hand, confidence weakened among manufacturers (-4.4 vs -4.3) and traders (3 vs 3.7), of which retailers (6.1 vs 6.4) and wholesalers (-0.1 vs 0.9).