Economic sentiment recovers for third quarter in a row

TIRANA, July 15 – Albania’s Economic Sentiment Indicator, measuring both business and consumer confidence, recovered for the third quarter in a row, this time also fuelled by a turning point in consumer confidence, according to a confidence survey for the second quarter of 2014 published by the country’s central bank.
The improvement of this indicator, which yet remains 5.6 percent below its long-term average, was a result of a confidence boost in the industry, trade and services sectors as well as a slight recovery by consumers.
Confidence in the industry sector jumped by 5.6 percentage points to 6.1 percent above its long-term average on better production and financial situation with prospects expected to improve in the third quarter of the year.
The long-ailing construction sector, also registered a slight recovery of 1.7 percent, but its confidence continues remaining 7.6 percentage points below its long-term average on higher unsold apartments negatively affecting their financial situation.
The confidence index in the key services sector recovered for the third quarter in a row jumping its long-term average by 1 percentage points. The trade sector, also registered a confidence boost fuelled by overall business and employment situation.
The consumer confidence index also recovered by 2.4 percentage points in the second quarter of 2014, fuelled by optimistic prospects about the economic situation, big purchases and income-spending balance. The survey shows both businesses and households are more optimistic for the third quarter of the year.
Since the final quarter of 2013, Albania’s central bank has also included the trade confidence index in the Economic Sentiment Indicator and updated the business and consumer confidence indices to annual GDP fluctuations.