TIRANA, May 2 /ATA/ – Albania’s economic confidence recorded a significant increase in April, rising to 113.8 from 107.1 in March, according to the Bank of Albania’s latest report.
According to the central bank’s report, the Economic Sentiment Indicator (ESI) rose 6.6 points to 113.8 compared to March 2024, standing 13.8 points above the long-term average.
The uptick ESI was driven by the increased confidence in the sectors of industry, services, trade as well as in consumer confidence, while confidence in construction was slightly down.
The Industry Confidence Indicator (ICI) rose 3.5 percentage points in April, mostly driven by more positive evaluation on current production and order books. The current ICI rate stands at 7 percentage points above the historical average. Businesses operating in this sector have increased expectations on employment in the future. Their expectations on selling prices in the future have remained unchanged.
The Construction Confidence Indicator (BCI) slightly fell by 0.7 percentage point for the second consecutive month in April. However, the BCI stands around 22 percentage points above the long-term average. The lower assessments of businesses operating in this sector on their current order books mainly drove to this fall. On the other hand, expectations on employment and prices in the future are edging up.
Services Confidence Indicator (SCI) increased considerably by 8.2 percentage points in April 2024, with the current SCI level close to the highest historical values, around 22 percentage points above its long-term average. Both components of SCI – current performance of business and the level of demand – picked up. Also, businesses operating in services sector have increased expectations on employment and prices for the future.
Trade Confidence Indicator (TCI) recorded the highest increase across all indicators in April 2024, by around 9.3 percentage points. The optimistic assessments on the current performance of business drove to this sharp rise. Expectations on employment were also up in April, though to a lesser extent compared with the first component. The current level of TCI stands around 13 percentage points above the historical average. Businesses operating in this sector have increased their expectations on business performance in the future, while lowering their expectations on future price.
Consumer Confidence Index (CCI) rose by 3.8 percentage points, reinforcing the upward trend started last month. Its current level has exceeded the historical average by 4.6 percentage points. The CCI improved in April 2024 thanks to all its components, respectively: improved expectations on the overall economic situation, the financial situation, as well as an on major purchases. Expectations on the overall future prices and employment have been revised downwards.
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