
The economic sentiment indicator rose again in August. According to the Bank of Albania, this indicator increased by 1 point and is about 12 percentage points above the historical average.
The improvement was mainly influenced by the increase in confidence in the trade, industry and construction sectors and to a lesser extent by the increase in consumer confidence. On the other hand, confidence in the services sector made a negative contribution.
The industry confidence indicator registered an increase of 3.4 percentage points in August, standing about 11 percentage points above the historical average. The increase was mainly influenced by the more optimistic estimates of businesses for the level of new orders and for the current industrial production.
Meanwhile, businesses expect industrial production and future employment to decline slightly. Expectations for future prices increased compared to last month.
The confidence indicator in construction increased by 2 percentage points in August.
Its level currently stands 24 points above the historical average and near the all-time high. The increase was determined by positive estimates for current construction activity. The level of new orders registered a decline. Expectations for the prices that businesses will set in the future have been assessed downward.
The indicator of confidence in services recorded a decrease of about 5 percentage points in the month of August. However, its level currently stands around 14 percentage points above the historical average. The decline was determined both by the non-optimistic assessments of businesses for the current progress of their activity, as well as by those for the current level of demand. Expectations for future demand fell during this month. Businesses have revised upwards the price performance in the future.
The trade confidence indicator expanded by about 6 percentage points in August, driven mainly by positive assessments of current business performance and employment expectations. The businesses of the sector expect increased business performance in the near future as well. The current level of the indicator is close to the highest historical value. Expectations for future prices are estimated to be rising.
The consumer confidence indicator 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 mainly determined by more optimistic expectations for the financial situation and the economic situation in the country. Also, the current and expected balance for bulk purchases are slightly revised upwards.


