Will we have lower prices this summer? - BoA: Consumers and all sectors of the economy expect a decline
Businesses in the services and construction sectors had low confidence in the economy during June. This contributed to a 0.6 point drop in the economic sentiment indicator. According to the Bank of Albania survey, consumers, trade and industry view the state of the Albanian economy more optimistically.
It seems that the summer season, which brings the largest influx of tourists and the highest profits, especially for hotels, bars, and restaurants in coastal areas, has not started with much optimism, as these businesses and others in the service sector are not satisfied with the current performance of their activity and the level of demand.
Construction has also followed a similar path. The construction confidence indicator fell by 0.8 percentage points in June. This was due to a lower number of orders, while actual construction activity remained at the same levels. Prices in this sector are also expected to fall further.
On the other hand, it seems that the financial situation and large purchases have improved for consumers. Confidence in the economy increased by 0.6 percentage points, while they continue to have the same opinion as before regarding the country's economic situation in the future. They also expect prices to decrease.
The industry is optimistic about the performance of current orders, as well as exports. However, it is not satisfied with industrial production. Businesses in this sector predict an increase in employment.
Data shows that all sectors of the economy expect prices to fall during the summer months.
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