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The month of April is optimistic for the economy, only construction worsens

2024-05-02 13:10:21Biznes SHKRUAR NGA REDAKSIA VOX

The month of April is optimistic for the economy, only construction worsens

The Economic Sentiment Indicator for the month of April this year has registered an increase of 6.6 points, which shows that confidence in the economy is gradually improving compared to the first two months of the year where this indicator was decreasing.

The figures of the Bank of Albania through the Survey of Consumer and Business Confidence signal that the Economic Sentiment Indicator during the month of April reached close to 113.8 points, which indicates that it is 13.8 points above the historical average. The institution clarifies in the survey that this improvement of the indicator that measures confidence in the economy has mainly come from the increase in confidence in the sectors of industry, services, trade as well as the increase in consumer confidence. In contrast, confidence in the construction sector suffered a slight decline for the second month in a row.

The confidence indicator in construction fell slightly by 0.7 percentage points in April, while in March this indicator fell by 0.9 percentage points. This performance this month was largely determined by lower estimates for the level of current orders. On the other hand, expectations for employment and for the prices they will set in the future have registered growth.

The industry confidence index rose by 3.5 percentage points in April, driven by more optimistic estimates of current industrial production and future export orders. Business expectations for future industrial production also rose, while expectations for prices have remained unchanged.

The indicator of confidence in services increased significantly by 8.2 percentage points, thus marking the highest historical level by 22 percentage points above the average. The current performance of business activity as well as the increase in the level of demand from consumers contributed to this increase.

Also, the Trade Confidence Indicator has recorded the highest increase of all indicators this month, with around 9.3 percentage points. This strong growth was mainly influenced by optimistic assessments of current business performance as well as employment expectations.

On the other hand, the Consumer Confidence Indicator increased by 3.8 percentage points, reinforcing the upward trend started last month. Consumers assessed their financial situation, the economic situation of the country in the future as well as purchases in large amounts, while consumer expectations for unemployment and inflation in the future have decreased.


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