Luxembourg, in line with the Eurozone, experiences a notable lag in business confidence. This predicament is evident across the service, industry, and the construction sectors.
The Grand Duchy's construction sector, in particular, finds itself grappling with dwindling morale, more so than its European counterparts. In July, about one third of companies within this sector expressed concerns about insufficient demand.
These circumstances not only contribute to the overall economic landscape but also factor into the Grand Duchy's rising unemployment levels.
The National Institute of Statistics and Economic Studies (STATEC) maintains its projection for average inflation rates of 3.9% in 2023 and 2.5% in 2024.
The next wage indexation could be triggered this month or in September.
Based on current projections, STATEC suggests that the subsequent indexation, following the imminent one, is expected to be triggered in the third quarter of the following year.
