TIRANA, Jan. 15 – Albania’s Economic Sentiment Indicator, measuring both business and consumer confidence, continued recovering for the fifth quarter in a row, and for the first time in the past four years climbed above its long-term historical average, according to a survey conducted by Albania’s central bank.
The Economic Sentiment Indicator (ESI) climbed 1.5 percentage points above its historical average in the final quarter of 2014 fuelled by a confidence boost in the construction, services and trade sectors but negatively affected by declining confidence in industry and consumers.
Confidence in the industry sector dropped by 1.8 percentage points on deteriorating production and financial situation but continued remaining above its long-term historical average, says the survey.
Confidence in the long-ailing construction industry surprisingly improved by 10 percentage points in the final quarter of 2014 despite a ban imposed on construction permits issued by local government units. The situation was influenced by higher sales reducing their stock and improving their financial situation.
Confidence in the services sector and trade which accounts for around 50 percent of the GDP continued recovering on higher demand and better financial situation.
However, consumer confidence in the final quarter of 2014 dropped by 3.9 percent affected by lower income and a drop in big purchases.
Consumers say they are pessimistic about employment prospects in the first quarter of 2015and that the cost of living and their financial situation deteriorated in the final quarter of last year.
