Albania’s economic sentiment index (ESI) decreased by 0.8 percentage points (pp) in April to around 7.4 pp above the long-term average, after rising 1.1 pp in March, the central bank said on Friday.

The decline of the ESI resulted mainly from industry sector, and to a lesser extent, from consumer confidence. Meanwhile, confidence indicators in construction, services and trade edged slightly up.

The decrease reflects a drop in confidence by 6.7 pp in industry and by 1.3 pp among consumers, the Bank of Albania said in its monthly business and consumer confidence survey.

The construction confidence indicator rose by 1.3 pp to 17 pp above average, whereas the services indicator rose slightly by 0.5 pp.

The industry confidence indicator declined by 6.7 pps in April 2025, driven mainly by the worsened assessments on order books domestically, particularly from exports. In turn, the current level of the industry confidence indicator while increasing the negative values, scored below the historical average. Businesses operating in the industry sector increased their employment expectations for the future while decreasing the selling price expectations.

Meanwhile, the construction confidence indicator increased by 1.3 pps in April, for the second month running. The construction confidence indicator stands around 17 pps above the long-term average. The higher appraisals on the current balance of order books resulted in the increase of the construction confidence indicator. Expectations on employment and prices in the future are edging up.

In April 2025, the services confidence indicator was slightly up by 0.5 pps. The current level of the services confidence indicator stands around 14 pps above its long-term average. Both components of the services confidence indicator - current business performance and the level of demand - inched up. In addition, services-related businesses have increased their expectations for employment and prices in the future.

Meanwhile, the trade confidence indicator rose by around 0.8 pps. The optimistic assessments on employment in the future, drove to this increase. The current level of the trade confidence indicator stands around 7 pps above the historical average. Also, businesses conducting their activity in trade, increased in April, their expectations on both the performance of their business and prices in the future.

The consumer confidence indicator declined by 1.3 pps, though its current level remains around 2 pps above the historical average. In April 2025, the fall across almost all composing balances of this indicator, respectively: expectations on the overall economic situation, the financial situation, as well as on current major purchases, resulted in a worsening of the consumer confidence indicator. Expectations on the overall future prices and employment have been revised slightly downward.