The Economic Sentiment Indicator (ESI) in Albania recorded a slight decline of 0.4 points in December, according to the Bank of Albania. Nevertheless, the indicator remains about 6 percentage points above its historical average.

Overall, the decline mainly reflected weaker confidence in services and industry. In the services sector, the indicator fell by 2.8 points. Businesses reported less optimistic views on current activity and demand. At the same time, they revised employment expectations downward, while they expect prices to rise. In industry, confidence edged down by 0.2 points, largely due to expectations of lower export orders. However, firms raised employment expectations and expect product prices to remain stable.

Meanwhile, the trade sector and consumer confidence remained almost unchanged. In trade, businesses assessed current activity less positively. However, they increased employment expectations. At the same time, consumers maintained their confidence, despite mixed expectations about the economic and financial situation.

By contrast, construction remained the most optimistic sector. Confidence rose by 4.5 points and now stands 16.6 points above the historical average. Strong business activity and current orders supported this increase. In addition, firms raised expectations for future prices.

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