Builders show high expectations for further increase in the price level in the first quarter of this year, according to a survey conducted by the Bank of Albania, regarding the financial situation and employment expectations and prices. Unlike all other sectors that showed high doses of pessimism, due to the negative effects of the pandemic during this year, the construction sector managed to survive the crisis. Most of the builders interviewed by the Bank of Albania stated that prices will increase further during this year. The balance of responses that prices will rise, in all businesses in the sector was 11% higher than the responses of those who think prices will not rise. The balance of expectations that prices will rise further marked the highest level in at least the last two years. The construction confidence indicator rose by 8.0 percentage points in the first quarter. The increase of construction confidence indicator was mainly driven by the growth in the balance of construction activity by 15.2 pp. Meanwhile the other balance of the indicator, order books, slightly increased by 0.8 pp. Among the other balances of the survey, the financial situation, employment, and expectations over the next three months, did increase. Meanwhile, the capacity utilization rate lowered close to 62.8%.
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