FX.co ★ Portugal Business Climate Edges Down in January

In January 2026, business confidence in Portugal decreased slightly to 3 from the previous 3.1 in December, concluding a two-month period of improvement as sentiment waned across most industries. The economic climate indicator declined after two months of growth, indicating diminished confidence in the trade, manufacturing, and services sectors. Confidence in the trade sector dropped for the second month in a row, influenced by less favorable views on sales volumes and future activity expectations over the next three months. Similarly, confidence in the manufacturing sector saw a downturn, reflecting negative evaluations of global demand and short-term production outlooks. In the services sector, sentiment weakened due to dwindling demand expectations, softer evaluations of current activity, and weaker order books. Conversely, confidence in construction and public works saw an upturn after a previous decline, buoyed by a strong positive sentiment regarding employment expectations. Price expectations softened in trade and services but experienced an increase in manufacturing and construction sectors.