SYNTHESIS INE@COVID-19, 18 Jan-2021

January . 18 . 2021 SYNTH SIS IN @ COVID-19 www.ine.pt page 2/13 Communication Unit | tel: +351 21 842 61 10 | sci@ine.pt In December 2020, the developments in confidence indicators were as follows. • The Consumer confidence indicator increased after falling in the previous month, returning to the relatively stable level seen since June. This increase was largely the result of the positive contribution of perspectives on the future evolution of the country’s economic situation, with the remaining components also contributing positively, opinions and expectations about the household’s financial situation and expectations on making important purchases. • The Manufacturing confidence indicator increased, reversing the reduction registered in the previous month and resuming the recovery observed until August. The recovery of the indicator reflected the positive contribution of the balance of the firm’s production perspectives and opinions regarding the evolution of the global demand, while opinions on stocks of finished products made a slightly negative contribution. The indicator increased in all three groupings: Consumer Goods, Investment Goods , and Intermediate Goods . • The Construction and Public Works confidence indicator increased, after having interrupted, in the previous month, the recovery profile observed between May and October. The increase in the indicator resulted from the positive contributions of both components – opinions on order books and perspectives on employment - slightly in the latter case. The increase in the indicator occurred in Real Estate Development and Building Construction and Specialized Construction Activities while decreasing in Civil Engineering for the third consecutive month. • The Trade confidence indicator increased slightly after the sharp decline observed in November when it interrupted the recovery profile observed between May and October. These developments reflected the marked positive contribution from the firm’s activity perspectives over the next three months, given that opinions on the volume of sales and stocks contributed negatively. The confidence indicator increased in Wholesale Trade and declined in Retail Trade . • The Services confidence indicator also declined significantly, after having partially recovered between June and October from the historical minimum of the series reached in May. The evolution of the indicator resulted fromthe negative contributions of the perspectives on the evolution of the order books and, to a greater extent, the perspectives on the evolution of demand. The reduction of the confidence indicator was observed in all sections, with emphasis on Artistic , Entertainment, Sports and Recreational Activities, Transportation and Storage , and Accommodation and Food Services. • As in November, the Services confidence indicator declined, after having partially recovered between June and October. The evolution of the indicator resulted from the negative contribution of the perspectives on the evolution of demand, while the perspectives on the evolution of the order books and opinions on the firm’s activity contributed positively. The decline in the confidence indicator in December was marked in the Information and Communication Activities , followed by the Other Services Activities , Transportation and Storage , and Accommodation and Food Services .