Afternoon Update -- Thursday, February 26, 2026

The afternoon headlines from Portugal.

Consumer Confidence Falls as Businesses Turn Cautiously Optimistic

A split in sentiment emerged from Thursday's INE survey data. Consumer confidence fell in February after two consecutive months of improvement, likely reflecting anxiety over the storm recovery costs and lay-off concerns. Meanwhile, the business climate indicator edged up, with confidence rising in services and manufacturing but declining in retail and construction. The divergence suggests that while companies are finding their footing, households remain wary about what comes next.

Portuguese CEOs Confident on 2026 Growth but Struggling With Strategy

Nearly three-quarters of Portuguese CEOs believe the national economy will grow in 2026, according to PwC's 29th CEO Survey presented in Lisbon on Thursday. However, only a third expect that optimism to translate into revenue gains for their own firms. A striking finding: Portuguese executives spend 58 per cent of their time on short-term decisions -- well above the global average -- leaving just 10 per cent for planning beyond five years. Cyber threats have overtaken most other concerns as the top perceived risk.

Marcelo Says It Is Time to Be "Silent" as Presidency Winds Down

With just eight days left in office, President Marcelo Rebelo de Sousa visited the BTL tourism fair in Lisbon on Thursday morning and declined to comment on any political developments. "I am leaving the stage and President Seguro is entering it," he said, refusing to weigh in on the new Interior Minister, Passos Coelho's public appearances, or Montenegro's deficit comments. Antonio Jose Seguro takes office on March 9.

Opposition Demands Full Salary for Storm Lay-Off Workers

A heated parliamentary debate on Wednesday saw Bloco de Esquerda, PCP, and Livre push for workers affected by the simplified lay-off scheme to receive 100 per cent of their salary. The government's published decree does not guarantee full pay despite earlier assurances from the Labour Ministry. "Does anyone understand the logic of cutting the salary of someone who just lost their home?" asked BE deputy Fabian Figueiredo. PSD and CDS accused the opposition of making unconstitutional proposals that violate budgetary rules.

Mortgage Lending Hits 20-Year High

Housing credit grew 10.4 per cent year-on-year in January, the fastest pace since 2006, Bank of Portugal data showed on Thursday. Total outstanding mortgages reached 111.7 billion euros. The acceleration reflects improved borrowing conditions following ECB rate cuts, but also highlights persistent demand pressure in a market where supply remains constrained.

Storms Leave "A Great Deal of Work" From Dams to Power Grids

Environment Minister Maria da Graca Carvalho outlined the scale of infrastructure repair needed following the winter storms, in an interview on RTP Noticias. Priorities include dam maintenance (particularly smaller agricultural dams), coastal defences, river management, electrical grid resilience, and reforestation. The government will launch a tender for the Girabolhos dam project, previously awarded to Endesa.

OLX Group Invests 20 Million Euros in AI With Portugal as Pilot Market

The OLX Group announced a 20-million-euro investment in artificial intelligence for 2026, with Portugal serving as a pilot market for new tools in the real estate and automotive sectors. The tools are being showcased at the CLAIM AI conference at Convento do Beato in Lisbon this week. Since 2018, OLX has invested approximately 200 million euros in AI across its global operations.