FX.co ★ Portugal Business Climate Indicator Falls for 3rd Month

Business confidence in Portugal has declined for the third consecutive month, reaching 2.2 in April 2025—its lowest point since October of the previous year. This downturn appears to be associated with ongoing political uncertainty as the nation prepares for its third snap election in three years, scheduled for May 18. The election follows a no-confidence vote that resulted in the fall of Prime Minister Luis Montenegro's center-right coalition government. Confidence has diminished across most sectors, with the most significant drop occurring among service providers, where confidence plummeted to 4.1 from 10.7 in March. Retailers also experienced a decrease, falling to 3.6 from 4.1, while construction firms saw a drop from 4.3 to 3.9. Moreover, sentiment within the manufacturing sector continued to be weak, inching slightly upward from -5.4 to -5.2.