BoA Report: Economic Sentiment Indicator increased by 1.1 points, consumer confidence unchanged

2025-06-02 15:52:00, Ekonomi CNA

BoA Report: Economic Sentiment Indicator increased by 1.1 points, consumer

The Bank of Albania has shared data on economic sentiment indicators. In the report for May, published today by the BoA, it is noted that the Economic Sentiment Indicator increased by 1.1 points, standing 8.9 points above the historical average. The increase was driven by improved confidence in industry and services. Consumer confidence remained unchanged.

The Economic Sentiment Indicator (ESI) rose by 1.1 points in May, standing 8.9 points above the historical average (Chart 1). The increase in the ESI this month reflected improved confidence in the industry and services sectors. In contrast, the decline in confidence in the construction and trade sectors made a negative contribution to the aggregate indicator for the economy. Consumer confidence remained unchanged, at the level of the previous month.

BoA Report: Economic Sentiment Indicator increased by 1.1 points, consumer

The industrial confidence indicator (tBi) increased by 8 percentage points in May, offsetting the decline of the previous month. Its level this month is again above the historical average by about 7.8 percentage points (Chart 2). The improvement in the TBI was determined by optimistic assessments of businesses’ orders for exports. Businesses were also more optimistic about current industrial production. Expectations for future prices have decreased slightly compared to the previous month (Table 2, industry sector).

The Construction Confidence Indicator (CCI) fell by 3.4 percentage points in May. Despite monthly fluctuations, the CCI level remains significantly (+13.4 percentage points) above the historical average (Chart 2). The decline in CCI this month was driven by lower business assessments of current construction activity and lower expectations for contract orders. Price expectations were revised slightly upwards this month (Table 2, Construction sector).

BoA Report: Economic Sentiment Indicator increased by 1.1 points, consumer

The Services Confidence Indicator (SCI) increased by 2.2 percentage points in May. Its current level remains significantly above the historical average (+16 percentage points). The improvement in the SCI was driven by more positive assessments by businesses about the current performance of their activity and the level of demand. Business expectations for future prices have increased this month (Table 2, services sector).

The trade confidence indicator (tBt) fell by 1.8 percentage points in May. Its current level is around 4 percentage points above the historical average (Chart 2). The decline in TBT was mainly driven by more pessimistic assessments of current business performance. To a lesser extent, the component of expectations for the level of future employment also had a downward effect. Expectations for future prices have been revised upwards this month (Table 2, trade sector).

BoA Report: Economic Sentiment Indicator increased by 1.1 points, consumer

The consumer confidence indicator (CCI) maintained the same level as a month earlier, standing around 2.4 percentage points above the historical average (Chart 2). Regarding the components of the CCI indicator, consumers' assessment of the general economic situation improved in May, making the main upward contribution. Meanwhile, the other components - the financial situation of households and large purchases - made a negative contribution to the CCI. /CNA