Construction confidence rises

TIRANA, Feb.16 – The Centre for Research and Development (CRD) said on Thursday that the business confidence of the Albanian construction sector rose in January on an annual basis and also was higher than it was three months earlier. The confidence index measured minus four points last month, up eight points from January 2006 and four points higher than in October last year, the centre said in a survey .
The ongoing energy crisis in Albania with severe power rationing in December was the major setback for the sector’s development according to more than half of the interviewed managers, or 55 percent, said. The list of drawbacks for Albanian construction managers included also slow awarding of building permits, insufficient demand, unfair competition from the grey economy and corrupt public administration. The confidence indicator for the sector is based on managers’ assessments of number of orders, business activity for the previous three months and contracted works, and expectations about the employment in the sector and prices. The January survey is based on interviews with managers of 187 building companies in the regions of Tirana, Durres, Vlore, Fier, Elbasan and Shkoder.
Since the first release, the index has been positive only twice – the first time in October 2003 when it measured five points, and the second time – in April 2005 when it stood at four points. CRD is an independent non-profit organization based in Tirana. It has been releasing its confidence index quarterly since January 2002.
The results of the survey are summarized below: