Monday , September 26 2022

Enterprise optimism reached an unprecedented level, according to the Citadel index


Bank & Citadele & # 821; economist Martinš Abolinš

Bank "Citadele" economist Martins Abolins

Photo: Ieva Leinish / LETA

The esteem of Latvian businessmen this fall is best in the last five years, reaching even optimism even before the crisis for large companies, according to the Citadel index.

The favor of Latvian entrepreneurs this fall has improved, and the Citadel index is 52.4 points, compared with the index 51.3 in the previous quarter. This is the most optimistic mood of the entrepreneur since the beginning of 2013, when the Citadel index was the same.

In addition, the feeling of big businessmen in Latvia has reached unprecedented optimism and pre-crisis level. This year, with more than 250 employees, the Citadel index is 62.5 points, the highest index since the end of 2006, when it was 63.5.

Small and medium enterprises are more cautious. With an index of 57, managers with the number of employees from 50 to 249 are optimistic.

The index for small enterprises that employs 10 to 49 employees is 52.6, and the optimism of micro companies is more cautious – 50.6 points.

Martins Abolins, an economist at Citadele Bank, says the growing economy and optimism of entrepreneurs is generally good news. However, it should be noted that, obviously, small businesses still do not feel this positive wave in the economy.

Finally, a positive estimate of all sectors of index formation – country and industry activity, competition in the sector, company turnover, profitability, financial status, number of employees and investments.

The assessment of the profitability and financial standing of entrepreneurs in the last quarter was still pessimistic. Similarly, the mood of companies in the trade and service sector tends to improve, while manufacturing and construction, which have long been the most optimistic sector in Latvia, are less optimistic.

In all areas of the economy, an optimistic feeling is observed, and in the last quarter, there has been some improvement in the mood in the service sector, with the index rising to 52.9.

Similar optimism with the index of 52.6 is in the construction industry, while the managers of the production and trade sector are somewhat less optimistic – their index is 52.7 and 51.4 degrees.

The IT sector is the most optimistic in terms of services, and cautious optimists provide education, transport and storage services.

All in all, the mood has been improved both for export and for the domestic market. The exporting index is 55, while the optimism of the company that does not export 51.26 points.

Citadele Indek is a study that Citadele Bank conducted in Latvia since 2004. A fourth overview of 750 owners and their managers is held.

Surveys and data collection are provided by the market and research center SKDS. In the study, producers, traders, manufacturers and service providers from all regions of Latvia expressed their opinion.

Source link