Business confidence indicator improves, but not consumer confidence

2026-02-02 22:34:15, Ekonomi CNA

The business confidence indicator started 2026 on the rise. According to the Bank of Albania, the economic sentiment indicator (ESI) recorded an increase of 4.2 points in January, standing 10 points above the historical average.

This improvement was driven by increased business confidence in four sectors of the economy: industry, construction, services and trade. Meanwhile, consumer confidence remained unchanged compared to the previous month.

The industry confidence indicator increased by 4.8 percentage points in January, standing around 7 percentage points above the historical average. Its increase was positively influenced by the improvement in all three components: the assessment of businesses for industrial production, for total order contracts and for exports. Also, business expectations for future prices are increasing.

The construction confidence indicator increased by 3.1 percentage points in January. Currently, its level is about 15 percentage points above the historical average. The improvement was driven by two components: businesses' assessment of construction activity and current orders. Expectations for future prices fell this month.

The services confidence indicator increased by 7.4 percentage points this month. The indicator level remains around 13 percentage points above the historical average. The increase in confidence was positively influenced by businesses' more optimistic assessments of the level of demand and the current performance of their business. Businesses' expectations for future prices have remained unchanged compared to a month ago.

The trade confidence indicator increased by 4.4 percentage points in January, reaching a level 13 percentage points above the historical average. The increase was mainly influenced by businesses' optimistic assessments of the current sales performance. Business expectations for the level of employment in the future also made an increasing contribution, but to a lesser extent. Expectations for future prices increased.

The consumer confidence indicator was unchanged from December, remaining around 1.4 percentage points above its historical average. As for the constituent components, the situation of large purchases improved in January, both in terms of current conditions and expectations for the future. On the other hand, consumers somewhat lowered their expectations for their situation.

personal financial situation, as well as the economic situation in the future, compared to the previous month./REL