The latest publication from the National Statistics Institute (INE) reveals a drop in the Economic Climate Indicator for the third consecutive quarter.

According to data from INE, in sectoral terms, the unfavorable situation of the economy in the third quarter of 2021 stemmed from the negative assessment of agents in the industrial production and services sectors.

This made it possible to supplant trade, which registered a substantial increase in the period under review.

INE's analysis indicates that future demand extended the fall in the third quarter, i.e., the indicator continued to deteriorate in the third quarter of 2021, despite the slight difference in the balance of responses from the previous quarter, as well as the lowest level in its time series of the last four quarters.

This unfavorable outlook in the quarter under review stemmed from the pessimistic assessment of the indicator in the industrial production and services sectors. This is in contrast to the trade sector which appreciated positively in relation to the previous quarter.

As for employment, INE indicates that it continued to fall in the period under review. That is, it registered a sharp decline when compared with the previous quarter.

This happens for the third consecutive quarter, with its balance reaching the lowest level of the time series perspective.

Going to the numbers, INE says that on average, 39% of the surveyed companies faced some obstacle in the third quarter, a situation that represented a decrease of 15% of companies with constraints compared to the previous quarter.

According to INE, the drop in the proportion of firms with activity limitation in the quarter under review was mainly influenced by the reduction of firms in difficulty in all sectors compared to the previous quarter.

The sectors with the highest relative frequency of firms with constraints were transport services (46%), industrial production activities (40%) and trade (32%).