OREANDA-NEWS. July 08, 2009. A gauge of business activity index Parex Index sunk in June to a 5-year low as, in comparison to March 2009, its value fell by 2.49 points dropping to 31.16 points, which, in contrast to previous monthly readings, is a relatively large decrease, reported the press-centre of Parex.

Although in 1Q2009, the Latvian entrepreneurs were increasingly optimistic about the future economic situation , the second quarter of the year saw this optimism diminish again. Both present (25.72 points) and future (36.61) indexes are negative reflecting the Latvian entrepreneurs’ pessimism regarding the current situation, and predicting the deterioration of the situation in the nearest six months. However, the value of Parex future index during the quarter declined less than the value of Parex present index - present index fell by 3.29 points, while futures index - by 1.69 points (see graph below).

In 2Q 2009, six out of eight Parex Index sub-indexes receded, whilst two slightly increased: the "competition in industry" sub-index has grown by 1.70 points and the "general economic activity in the country" sub-index increased by 1.11 points. In turn, the highest decrease was observed in sub-indexes “economic activity of the industry"(a drop by 4.66 points) and the “company's turnover" (a drop by 4.45 points).