Food prices? Businesses will increase them again. BSH notes: Consumers give up buying in large amounts

2023-12-01 11:48:59Biznes SHKRUAR NGA REDAKSIA VOX

Food prices? Businesses will increase them again. BSH notes: Consumers give up

Businesses in the manufacturing and service sectors are expected to increase the prices of goods, causing a reaction from consumers, who are expected to give up purchases in large amounts. The Bank of Albania's latest survey on "Business and Consumer Confidence" has reached this conclusion.

According to the survey, the economic sentiment indicator fell by 1.6 points in November, marking the level of 109.3, mainly influenced by the lower value of the confidence indicator in the services and trade sector. The drop in confidence in the industry sectors and the drop in consumer confidence also contributed negatively. In contrast, the construction confidence indicator made a positive contribution this month.

The industry confidence indicator fell by 0.6 percentage points and the businesses of this sector were more pessimistic about ordering contracts, mainly those related to export. On the other hand, they reported improved actual industrial production. The expectations of industrial businesses for employment in the future are decreasing, while the prices of the products they will produce in the future are estimated to increase.

The only indicator that recorded growth was that of confidence in construction, determined mainly by more optimistic estimates for the current activity. The estimate for the level of orders registered an increase, but to a lesser extent. On the other hand, expectations for future employment and prices have registered increases.

The confidence indicator in services fell by 4.4 percentage points in November, where the less optimistic assessments of businesses contributed to both the current progress of their activity and the current level of demand. Expectations for the demand and level of employment in the future are estimated to increase by these businesses. Their expectations for future price movements are rising.

The trade confidence indicator registered a decrease of 1.7 percentage points, mainly influenced by less positive assessments of the current performance of their business. On the other hand, expectations for employment in the future have remained almost at the same level as a month ago. Expectations for future prices were rated slightly higher.

The consumer confidence indicator recorded a slight decrease of 0.7 percentage points. Consumers downgraded purchases in large amounts. On the other hand, they were more optimistic about the financial and economic situation of the country in the future.


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