The economic sentiment indicator in the country declined during April, mainly influenced by the deterioration of consumer confidence and the services and trade sectors, while industry and construction showed signs of improvement.
According to the survey published by the Bank of Albania, the economic sentiment indicator (ESI) decreased by 1.5 points during April, although it continues to remain above the historical average by about 6.4 points.
The decline in the indicator was mainly driven by the deterioration of confidence in the services and trade sectors, as well as a significant contraction in consumer confidence. In contrast, the industry and construction sectors improved, partially offsetting the overall decline.
In the industrial sector, confidence rose by 1.5 percentage points, supported by more optimistic expectations for production and export orders. Construction also recorded a stronger increase, by 4.9 percentage points, driven by an improvement in current orders.
In contrast, services and trade reported a decline in confidence. In the services sector, businesses gave lower assessments of current demand and activity, while in trade, pessimism was mainly related to sales performance.
The sharpest decline was recorded among consumers. The consumer confidence indicator fell by 3.2 percentage points, falling below the historical average. According to the data, consumers are more pessimistic about their financial situation, the future of the economy and the possibility of making large purchases.
The data suggests a mixed economic climate, with manufacturing and construction businesses showing resilience, while domestic demand and consumer expectations remain weak, signaling risks to the economic performance in the coming months. /BIRN/
