TIRANA, Sept 1 /ATA/ The economic sentiment indicator (ESI), which measures business and consumer confidence in the economy bounced back in August, the Bank of Albania announced.
According to the results of the Bank of Albania survey, ESI increased by 2.1 points compared to the month of July, while it stands at 14.1 points above the long-term average.
The increase in ESI was determined by the increased confidence in the service and construction sectors, while confidence in trade and industry businesses, as well as consumer confidence dropped yet again.
The construction confidence indicator increased by 5.1 percentage points in August. This indicator is around 30 percentage points above the long-term average. The increase this month was driven by both better rating of current construction activity and the level of current orders. Employment in this sector is projected to grow, while prices in the future are projected to drop.
The service confidence indicator increased significantly by 8.6 percentage points in August. This indicator stands within the range of record values, about 24.4 percentage points above the long-term average. Both constituent components of the indicator, the current performance of activity and the level of demand, have increased significantly. Business expects future prices to increase in the future.
The trade confidence indicator contracted by 2.8 percentage points in August, mainly influenced by gloomy outlook of current business performance. However, businesses in the sector expect an increase in orders and business performance in the near future. The current level of this indicator is around 12.5 percentage points above the historical average. Projections for employment and prices in the future are estimated to be declining.
The consumer confidence indicator continued to fall slightly even in August, by 0.5 percentage points. Despite the decline of the last two months, the current level of the indicator remains 1.6 percentage points above the record average. The decline in August was determined by less optimistic expectations about the financial situation and purchases in large amounts for the future. Expectations for the overall price level and future employment have been revised upwards.
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