Influenced by consumers and service sectors/ Confidence in the economy deteriorated in April

2026-05-04 15:19:00, Ekonomi CNA

Influenced by consumers and service sectors/ Confidence in the economy

The indicator that measures business and consumer confidence fell in April. According to the Bank of Albania, the economic sentiment indicator decreased by 1.5 points. However, according to the Central Bank, its current level remains 6.4 points above the historical average.

The decline in confidence for April was mainly driven by lower confidence in the services and trade sectors and a decline in consumer confidence. On the other hand, confidence in the industry and construction sectors made a positive contribution to the overall indicator.

The industry confidence indicator increased by 1.5 percentage points in April, after falling by 2 percentage points a month earlier. Its current level stands at around 8.5 percentage points above the historical average. The increase was driven by more optimistic business assessments of industrial production, as well as the performance of export orders. Business expectations for future prices, after a significant increase a month earlier, registered a slight decrease this month.

The construction confidence indicator increased by 4.9 percentage points in April. Currently, its level is about 10.6 percentage points above the historical average. The increase in the indicator was mainly influenced by the improvement in the current order situation. The other component, assessments of current construction activity, made a small downward contribution to the index. Expectations for future prices recorded almost the same level as a month ago.

The services confidence indicator fell by 1.7 percentage points this month. Currently, its level stands around 9 percentage points above the historical average. The performance during April was influenced by the decrease in businesses' assessment of the level of demand and the current performance of their business. Businesses' expectations for future prices have been revised downwards.

The trade confidence indicator decreased by 3.6 percentage points in April. However, its level remains significantly above the historical average, at around 13.4 percentage points. The decline in April was mainly influenced by businesses' less optimistic assessments of current sales performance. Expectations for future prices continued to increase this month.

The consumer confidence indicator fell by 3.2 percentage points in April, falling about 4.5 percentage points below the historical average. The decline was driven by declines in all four components: expectations for their personal financial situation, the future economic situation, and the situation of large purchases, current and expectations. /Monitor