TIRANA, Sept 2 /ATA/ The economic sentiment index rose again in August. According to the Bank of Albania, this indicator rose by 1 point and stands about 12 percentage points above the historical average.
The improvement was mainly influenced by increased confidence in the trade, industry and construction sectors, and to a lesser extent, by increased consumer confidence. On the other hand, confidence in the service sector had a negative contribution.
The industry confidence index recorded growth of 3.4 percentage points in August, standing about 11 percentage points above the historical average. The growth was mainly driven by businesses’ more upbeat estimates of the level of new orders and current industrial production.
Meanwhile, businesses expect industrial production and employment in the future to record a slight decline. Expectations for future prices rose relative to last month.
The construction confidence index rose 2 percentage points in August.
The increase was determined by positive assessments for current building activity. The level of new orders recorded decline. Expectations for prices that businesses will set in the future are priced down.
The index of confidence in services dropped about 5 percentage points in August. However, its level currently stands at about 14 percentage points above the historical average. The decline was determined both by businesses’ pessimistic estimates of their current activity performance and by those of the current level of demand. Expectations for future demand have dropped this month. Businesses have revised prices upwards in future.
The trade confidence index expanded by about 6 percentage points in August, mainly influenced by positive assessments on current business performance and employment expectations. The sector’s businesses expect business performance to increase even in the near future. The current level of the index stands at the highest historical value. Expectations for future prices are priced up.
Consumer confidence index continued to grow in August. The current level is 1.2 percentage points higher compared to last month and 1.3 percentage points above the historical average. The growth was determined mainly by the most optimistic expectations for the financial situation and economic situation in the country. Also, the current and expected balance for large-sum purchases have been easily revised upwards.
