Confidence in the economy, businesses are more optimistic than individuals

Confidence in the economy, businesses are more optimistic than individuals
Businesses in Albania have more confidence on the economy and have higher expectations on the future. Meanwhile, to be an individual, means in practice to be less optimistic in what tomorrow has in store for your finances. Such phenomenon is confirmed by the latest observation of the Bank of Albania regarding business and consumer confidence, according to which, the latter has seen a drop compared to the former.

“For the third month in a row, Economic Sensitivity Index continued to grow in the first quarter of 2017. This growth mainly reflected confidence growth among businesses, while consumer confidence saw a slight drop”, experts of the Albanian Bank say. They further add that since the end of last year, economic index sensitivity has only marked a growth, being above its historical average and being favored by the added level of business confidence in the economy, compared to the confidence of individuals which seems to be lower.

The Bank of Albania explains that there are several sectors of the economy, which have shown a high level of optimism about their current progress, but at the same time, about the future of their finances too, starting with the industry sector, for which the report shows that confidence in this sector has grown by +4.3%. This improvement mainly reflected the positive developments of industrial manufacturing with +14.8%.  “Businesses confirm that the number of contracts saw a growth of +6.9%”, experts of the Bank of Albania say. Adding that the financial situation of these businesses also marked an improvement. Then there’s the construction sector, whose confidence in the economy has also grown at a level of +5.9% and this was mainly impacted by the improvement of construction activities as such.

Meanwhile, the report also mentions the positive performance of the service sector with a growth of up to 10% for the first three months of the year. This sector is followed by commerce with an index of +2%. However, this shows an optimistic trend that the business sector is demonstrating on its current finances, but at the same time about what the future holds in store for it.

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