TIRANA, August 3 – Albania’s Economic Sentiment Index (ESI) weakened in July after business confidence declined across all sectors, especially construction and trade. Meanwhile, consumer confidence improved. According to the Bank of Albania, the index remained 5.4 points above its long-term average despite the monthly decline.
Confidence in industry fell by 0.8 percentage points because of weaker export order assessments. Construction confidence dropped by 4.6 percentage points after businesses reported lower activity and fewer orders. In addition, confidence in services declined by 2.4 percentage points as firms reported weaker demand. Trade confidence also fell by 3.2 percentage points following less optimistic business assessments. However, all four sectors remained above their historical averages. Businesses also lowered expectations for production and employment. At the same time, price expectations increased in construction and trade.
Unlike businesses, consumers became more optimistic in July. Consumer confidence rose by 2.2 percentage points and stood 1.2 points above its historical average. More positive views of the national economy, household finances and willingness to make major purchases supported the increase. As a result, consumers also lowered their expectations for overall price growth.
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