Portugal’s economic activity shows a “less intense decrease” in July

The Portuguese economy continued in July to recover gradually after the strong fall in activity in April, now showing signs of a “less intense decrease in economic activity”. The data is included in the Monthly Economic Survey released this Wednesday by the National Statistical Institute (INE).

“The information already available for July reveals a less intense contraction in economic activity, when compared to the previous month. The economic climate indicator increased between May and July, after reaching the minimum value of the series in April. Confidence indicators increased in all sectors, more intensely in Manufacturing,” says the statistics office in the survey.

With consumers, the confidence indicator declined in July, reversing the recovery recorded in May and June. The same is true in the Euro Zone with European consumer confidence deteriorating in July, although the economic sentiment indicator has continued to recover.

It should be noted that a month ago, when it released the Monthly Economic Survey for June, INE was still identifying an intense decrease in economic activity that month.

These developments in the economic climate and economic activity indicators are in line with the results of the Flash and Exceptional Business Survey (COVID-IREE), promoted by INE and Bank of Portugal, in which “the results point to a slight improvement in the enterprises’ situation in the first fortnight of July.”

Among the sectors, the manufacturing industry is the one that stands out the most in the economic recovery. “The manufacturing industry confidence indicator increased in June and July, after decreasing in the four previous months, recovering partially from the significant decreases of April and May,” explains INE, referring that the positive evolution is because of all components (stocks, demand and production).