SYNTHESIS INE@COVID-19, 15 apr-2021

April . 15 . 2021 SYNTH SIS IN @ COVID-19 www.ine.pt page 7/12 Communication Unit | tel: +351 21 842 61 10 | sci@ine.pt Economic activity decelerates sharply in February In February 2021, in Portugal: • The consumer confidence indicator decreased in February, following the increases observed in the previous two months, less markedly in January. This evolution was mainly due to the negative contribution of the perspectives regarding the future evolution of the country’s economic situation, with expectations on the future evolution of spending money on major purchases also contributing negatively. On the other hand, opinions about the past evolution of household’s financial situation presented a nil contribution, while perspectives regarding the future evolution of household’s financial situation contributed positively. • The manufacturing industry confidence indicator increased in February, after decreasing in the previous month. The behaviour of the indicator reflected the positive contributions of the firm’s production perspectives over the next three months, since the opinions on the evolution of the overall order books in the last three months and the opinions on the current stocks of finished products contributed negatively. The indicator increased in the Intermediate Goods group, decreased in the Investment Goods group, and stabilized in the Consumer Goods group. • The construction and public works confidence indicator decreased in February, after increasing in December and January. The decrease of the indicator reflected the negative contribution of the balance of opinions on current order books, as perspectives on employment maintained a positive contribution, although slightly lower than in January. In February, the indicator decreased in all the divisions, Construction of Buildings, Civil Engineering , and Specialized Construction Activities , only slightly in the second case. • The trade confidence indicator decreased in January and February, after increasing slightly in the previous month. This evolution reflected the strong negative contributions of the perspectives of the firm’s activity over the next three months and the opinions on the volume of sales, particularly in the former case, with opinions on current volume of stocks contributing positively. By subsector, the confidence indicator decreased in Wholesale Trade and, more significantly, in Retail Trade. • The services’ confidence indicator decreased intensely in February, after increasing in the previous month, resuming the downward path started in November. The behaviour of the indicator resulted from the strong negative contribution of all components, opinions on the evolution of the order books and perspectives on the evolution of the order books and on the evolution of the business situation, more intensely in the former case. The confidence indicators decreased in six of the eight sections, with emphasis on the sections of Real estate activities, Accommodation and food service activities and Information and communication activities presented significant declines. The economic activity indicator worsened sharply in January 2021, deepening the downward profile observed since October 2020. By components in the expenditure perspective, in year-on- -year terms: • The quantitative indicator of private consumption registered, as had already occurred in December 2020, less intense reductions, after having interrupted in November the upward profile registered in the previous six months; • The investment indicator registered a decrease in January, after having increased in the previous month.