Confidence in the economy increases/ After two consecutive months of decline, only builders become pessimistic

2024-04-02 14:12:00, Ekonomi CNA

Confidence in the economy increases/ After two consecutive months of decline,

Business and consumer confidence showed signs of improvement in March after falling for two consecutive months.

The Bank of Albania announced that the Economic Sentiment Indicator (TNE) recorded an upward curve of 2.5 points in March. The growth of TNE this month was influenced by the increase in confidence in the industry, trade, and services sectors as well as the increase in consumer confidence. On the other hand, confidence in the construction sector fell in March, after having registered growth the previous two months.

The industry confidence index (TBI) increased by 3.6 percentage points in March. Its level is currently 3.5 percentage points above the historical average.

The increase in TBI this month was influenced by increased business estimates for current industrial production as well as more optimistic expectations for future export orders. Also, business expectations for industrial production in the future registered growth. Expectations for future prices have remained unchanged compared to last month.

Confidence in the economy increases/ After two consecutive months of decline,

The construction confidence indicator (TBN) fell by 0.9 percentage points in March, after rising by 6.5 percentage points a month earlier. Its level continues to remain significantly above the historical average, with about 23 points.

TBN's decline was largely driven by declining estimates for current construction activity. On the other hand, actual orders were estimated to increase this month. Expectations for future employment and prices have declined.

The confidence index in services (TBSH) increased by 6.4 percentage points in March. The level of the indicator currently stands 12.3 percentage points above the historical average. The most optimistic evaluations of businesses contributed to the growth of TBSH, both for the current progress of their activity, as well as for the current level of demand. Also, expectations for future demand and employment levels have been revised upward this month. Businesses have revised downward the future price performance.

Confidence in the economy increases/ After two consecutive months of decline,

The trade confidence indicator (TBT) increased by 2.7 percentage points in March, after falling by 10.3 percentage points a month earlier. Currently, the TBT level is around 3.4 percentage points above the historical average.

The monthly growth of TBT was mainly influenced by the more optimistic assessment of businesses for the current performance of their business. Expectations for future employment also fell this month. Expectations for future prices were downgraded.

The consumer confidence index (CPI) registered an increase of 1.4 percentage points in March, rising again above the historical average level. Consumers assessed their financial situation, the economic situation of the country in the future as well as purchases in large amounts as improving. Consumer expectations for unemployment in the future decreased in March./ Monitor.al

Confidence in the economy increases/ After two consecutive months of decline,