Business confidence indicator falls in February

The business and consumer confidence indicator has declined in February
According to the Bank of Albania survey, the Economic Sentiment Indicator (ESI) decreased by 2.5 points compared to January, but remains 7.6 points above the long-term average.
The decline was mainly influenced by the contraction of confidence in the construction, services and trade sectors, while industry improved and consumer confidence remained almost unchanged.
In construction, the indicator fell by 6.5 percentage points, due to weaker assessments of activity and current orders, although the level remains 12 points above the historical average.
Services also recorded a decline of 1.9 points, due to weakening activity and demand.
Trade contracted by 3.6 percentage points, mainly influenced by less optimistic expectations for employment, but the indicator continues to remain around 10 points above the historical average.
In contrast, confidence in industry increased by 1.5 percentage points, thanks to more positive assessments of contracts, including those for exports, as well as rising expectations for production and employment.
Meanwhile, the consumer confidence indicator remained close to January's level, about 1.1 points above the historical average. Consumers lowered their expectations for their financial situation but increased their expectations for the future economic situation, while expectations for prices and employment were revised downwards.
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