Confidence in the economy falls in June, driven by services and construction

The Economic Sentiment Indicator (ESI) fell slightly by 0.6 points in June. However, the current level of the ESI remains 6.6 percentage points above the historical average.

The Bank of Albania reported that the slight decline in the TNE this month was mainly influenced by the weakening of the indicator in the services sector and, to a lesser extent, in the construction sector.

Meanwhile, confidence indicators in the trade and industry sector, as well as consumer confidence, recorded growth (Chart 2).

The industrial confidence indicator (ICI) increased by 0.6 percentage points in June, influenced by more optimistic assessments of the performance of both current orders and expectations for export orders.

The TBI level currently stands around 9 percentage points above the historical average. Meanwhile, business assessments of industrial production are less positive than a month ago.

The expectations of businesses in this sector for future employment have increased in June, while the prices of the products they will produce in the future are expected to fall.

The Construction Confidence Index (CCI) decreased by 0.8 percentage points in June. This indicator stands 11 percentage points above the long-term average (Chart 2).

The decrease in the TBN was determined by declining estimates for order contracts, while current construction activity remained at the same levels. Expectations for future prices are estimated to be decreasing.

The Services Confidence Indicator (SCI) fell by 3.8 percentage points in June. However, the SCI level remains about 8 percentage points above the long-term average.

The decline in the TBSH was contributed by less optimistic assessments of businesses regarding the current performance of their activity, and the current level of demand. Expectations for prices in this sector have also been revised downwards. Expectations for the level of employment in the future have been revised upwards.

The Trade Confidence Indicator (TBT) rose by 2.8 percentage points in June. The TBT level remains about 13 percentage points above the historical average. The current value of the TBT was influenced by rising assessments of current business performance.

Expectations for future prices declined.

The consumer confidence indicator (CBK) recorded an increase of about 0.6 percentage points, but remained about 1 percentage point below the historical average. Consumers slightly increased their financial situation and purchases in large amounts. The assessment of the country's economic situation in the future resulted in the same values ​​as last month. Expectations for the general level of prices in the future have been revised downwards.

Capacity utilization increases

The business capacity utilization rate indicator showed a broad-based sectoral increase in the second quarter of 2026, compared to the previous quarter. Capacity utilization improved in industry (+1 percentage point), construction (+0.4 percentage points), services (+1.2 percentage points) and trade (+2 percentage points).

On the other hand, the financial situation of businesses recorded a decline. This indicator resulted in a slight decline in the industry sector (-0.3 percentage points), the construction sector (-0.2 percentage points) and more in the services sector (-3.5 percentage points). Monitor