The Economic Sentiment Indicator (ESI) recorded a slight increase of 1.1 points in May. According to the latest survey by the Bank of Albania, the indicator remains close to the average level observed over the past two years and stands approximately 7 points above its historical average.
The increase in May was mainly driven by improved confidence in the construction and services sectors, as well as a rise in consumer confidence. In contrast, declining confidence in the trade sector had a negative impact, while confidence in the industrial sector remained broadly unchanged.
The Construction Confidence Indicator increased by 0.7 percentage points in May. Its current level stands about 13.3 percentage points above its historical average. The improvement was primarily supported by businesses’ more positive assessment of current construction activity, while evaluations of order books made a small negative contribution. Expectations regarding future prices declined during the month.
The Services Confidence Indicator rose by 3.4 percentage points in May. It currently stands around 12.6 percentage points above its historical average. The positive performance was driven by businesses’ improved assessments of demand levels and the current performance of their operations. Expectations for future prices remained unchanged.
The Industrial Confidence Indicator remained at the same level as in the previous month, standing approximately 8.3 percentage points above its historical average. In terms of its components, industrial businesses reported an increase in production during the month, despite assessing order books as weaker. Expectations regarding future prices declined.
Meanwhile, the Trade Confidence Indicator fell by 3.3 percentage points in May. Despite the decline, it remains around 9.7 percentage points above its historical average. The decrease was driven by less optimistic assessments of current sales performance, as well as weaker employment expectations. Future price expectations also recorded a significant decline, reversing the upward trend seen over the previous two months.
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