Bank of Albania: Consumers and businesses increase confidence in the economy

Businesses and consumers showed more confidence in economic developments during September, influencing the rise of the economic sentiment indicator by 0.3 percentage points, according to the Bank of Albania.

Referring to the Business and Consumer Confidence Survey, published today by the Central Bank, the economic sentiment indicator stands 7.8 percentage points above the historical average.

The month’s improvement was mainly supported by the rise in confidence in the construction sector and by the strengthening of consumer confidence. Construction businesses’ confidence rose by 6.6 percentage points, taking the indicator 18 percentage points above the long-term average. The improvement was determined by more positive assessments of current construction activity and order contracts.

Consumer confidence also marked a rise. The relevant indicator rose by about 2.3 percentage points and stands about 5 percentage points above the historical average. Consumers have assessed their financial situation and the country’s economic situation in the future more positively. Assessments for current and future large-scale purchases have also risen, while expectations for the general level of prices in the future have been revised downwards.

In the other business sectors, confidence indicators marked a fall during September. Confidence in industry fell by 3.8 percentage points, in services by 2.4 percentage points and in trade by 1.8 percentage points. However, confidence indicators in all three of these sectors continue to stand above historical averages, respectively about 3 percentage points in industry, 5 percentage points in services and 10 percentage points in trade.

According to the Bank of Albania, September’s data reflect a slight improvement in businesses’ and consumers’ perception of economic performance, with construction and consumers giving the main contribution to the rise in economic sentiment.