Albania’s overall economic confidence weakened in April, as both business and consumer sentiment showed signs of slowdown across key sectors. According to the Bank of Albania, the Economic Sentiment Indicator (ESI) fell by 1.5 points during the month, although it remains 6.4 points above its historical average.
%20fell%20by%201.5%20p.jpeg "Bank of Albania Reports Economic Sentiment Decline in April Across Albania")
The decline was mainly driven by weaker confidence in the services sector, trade sector, and among consumers, offset only partially by stronger performance in industry and construction. The latest figures suggest that while the Albanian economy continues to operate above long-term confidence levels, sentiment among businesses and households has softened compared to previous months.
In the industrial sector, confidence increased by 1.5 percentage points in April after falling by 2 percentage points in the previous month. The indicator currently stands 8.5 percentage points above its historical average. The improvement was supported by more optimistic business assessments regarding industrial production and export order contracts. Meanwhile, expectations for future prices showed a slight decline after a sharp increase in March.
The construction sector recorded one of the strongest monthly gains, with confidence rising by 4.9 percentage points. The indicator now remains 10.6 percentage points above the historical average. This growth was mainly influenced by improved assessments of current order volumes, although evaluations of current construction activity contributed slightly negatively. Price expectations remained broadly unchanged compared with the previous month.
By contrast, the services confidence indicator dropped by 1.7 percentage points in April, though it still stands 9 percentage points above its historical average. Businesses reported weaker demand and less favorable assessments of current business conditions. Expectations regarding future prices were also revised downward.
The trade sector saw confidence fall by 3.6 percentage points, primarily due to less optimistic sales assessments. Despite the decline, the indicator remains 13.4 percentage points above historical levels. At the same time, businesses continued to report rising expectations for future prices.
Consumer confidence also weakened significantly. The consumer confidence indicator declined by 3.2 percentage points, falling 4.5 percentage points below its historical average. The decline was driven by weaker expectations related to personal finances, the broader economic outlook, and both current and future conditions for major household purchases.