TIRANA, Aug 3 /ATA/ – Albania’s Economic Sentiment Indicator (ESI) declined in July as business confidence weakened across all major sectors, particularly construction and trade, while consumer confidence continued to improve, according to the Bank of Albania.
Despite the monthly decline, the Economic Sentiment Indicator remained 5.4 points above its long-term average, according to the central bank’s latest business and consumer confidence survey.
Industrial confidence fell by 0.8 points, reflecting less optimistic assessments of export order books. However, the indicator remained about 8 points above its historical average. Manufacturers also lowered expectations for production, employment and prices in the coming months.
Confidence in the construction sector dropped by 4.6 points, driven by weaker assessments of current building activity and order books. Even so, the indicator remained around 6 points above its long-term average, while businesses reported higher expectations for prices.
The services confidence indicator declined by 2.4 points as firms gave less favourable assessments of business activity and demand. The indicator nevertheless remained about 5.5 points above its historical average.
Trade confidence fell by 3.2 points, mainly due to weaker expectations for business performance. Retailers also lowered employment expectations while raising price expectations. The indicator remained about 9 points above its long-term average.
In contrast, consumer confidence strengthened during July, rising by 2.2 points to stand 1.2 points above its historical average.
The improvement reflected more positive assessments of the country’s economic outlook, household financial conditions and willingness to make major purchases. Consumers also revised down their expectations for overall price growth.
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