The overall index increased by 0.6 points, largely driven by stronger confidence in the trade sector, and remains around eight points above its historical average.

Confidence in industry fell, with the Industrial Confidence Indicator dropping 2.4 points after five months of increase, reflecting weaker business assessments of industrial production and made to order export contracts, while expectations for future prices rose sharply. Despite this, the indicator remains about seven points above its long-term average.

Construction confidence declined by four points, influenced by assessments of building activity and current orders, though its level is still roughly six points above the historical average. Service sector confidence edged down 0.5 points but it stands 11 points above average.

Trade confidence surged 7.6 points, about 17 points above the historical average, driven by optimistic business expectations for sales and employment. Consumer confidence fell 2.1 points, dipping slightly below the historical average, amid concerns over personal finances and the broader economic outlook.

Overall, the Bank of Albania said the data indicate a generally stable economic climate, with positive expectations in several key sectors despite declines in some areas.

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Central bank said on Monday that the Economic Sentiment Indicator (ESI) fell by 2.5 points compared with January, but remains 7.6 points above its long-term average.

The decline was driven mainly by weaker confidence in the construction, services, and trade sectors, while industry showed improvement and consumer confidence remained largely unchanged.

In construction, the indicator fell 6.5 points due to less positive assessments of current activity and orders, though it remains 12 points above the historical average. Services declined by 1.9 points as activity and demand weakened.

Trade confidence fell by 3.6 points, reflecting more cautious employment expectations, but the indicator remains around 10 points above its long-term average.

In contrast, industry confidence rose 1.5 points on the back of more positive evaluations of contracts, including exports, and rising expectations for production and employment.

Consumer confidence held steady near January’s level, around 1.1 points above its historical average. Consumers lowered expectations for their personal financial situation but raised optimism about the broader economy, while expectations for prices and employment were revised downward.

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The Bank of Albania reported on Thursday that, the confidence indicator has mostly reflected the strongest increase in business confidence in the services and trade sectors.

According to the BoA, in May of 2021 business confidence in the trade sector recorded a significant increase of 8.8%, mainly influenced by positive business assessments on sales performance.

Services included in this category are; maintenance and repair services; transport; travel; construction; insurance and pension services; financial services; use of intellectual property; telecommunication and informatics services; other business services; entertainment services; government services; etc.

According to INSTAT, at the end of 2020, the number of enterprises operating in the country reached of 65 thousand of which 63% of enterprises in the trade and services sectors.

The sector with the largest number of enterprises is the trade sector (40%) followed by the sector of other services (23%) and the sector of accommodation and restaurants (16.7%). //a.i/