Economic sentiment continues recovering

TIRANA, Oct. 15 – Albania’s Economic Sentiment Indicator, measuring both business and consumer confidence, continued recovering for the fourth quarter in a row, fuelled by a confidence boost in the industry, construction and services sectors. Consumers also had a positive impact on the third quarter Economic Sentiment Indicator (ESI) which rose by 3.7 percentage points in the third quarter of 2014, while the trade sector negatively contributed, according to a survey for the third quarter of 2014 conducted by the country’s central bank.
The confidence boost in the third quarter of 2014 returns the ESI to its long-term historical average of 100 after remaining below this level for three years, bringing back optimism about a return to moderate growth rate after the Albanian economy is estimated to have growth by only 0.56 percent in the first half of this year, the poorest rate in the past five global crisis years.
Confidence in the industry sector slightly recovered by 0.9 percentage points to 6.5 percent above its long-term average on better financial situation and the reduction of its inventory. However, both production and investments registered a decline in the third quarter.
The long-ailing construction sector, also registered a slight recovery of 2.8 percent, but its confidence continues remaining 4.5 percentage points below its long-term average on higher unsold apartments negatively affecting their financial situation.
The confidence index in the key services sector slightly recovered for the fourth quarter in a row jumping its long-term average by 1 percentage points.
The consumer confidence registered growth for the second quarter in a row fuelled by optimistic prospects about their financial situation and big purchases and are more optimistic for the final quarter of the year. In the third quarter of 2014, confidence in the trade sector dropped by 5 percent affected by the overall business situation and employment. This sector which registered a confidence boost in the previous three quarters now stands 4.4 percent below its long-term average.