Confidence among consumers falls slightly

The Central Bank of Malta has just published its latest Economic Update based on information available up to 11 December.

In November, the Bank’s Business Conditions Index eased slightly over the previous month and continued to suggest aboveaverage conditions. Economic sentiment rose as confidence was higher in the retail, industry and services sectors.

Meanwhile, confidence fell marginally among consumers, while remaining high from a historical perspective, and stood broadly unchanged in the construction sector.

Tourism activity increased at a slower pace in annual terms. Industrial production rose, while retail trade fell on a year earlier.

Conditions in the labour market remained favourable as the number of registered unemployed and the unemployment rate declined further on year ago levels.

The annual rate of inflation based on the Harmonised Index of Consumer Prices moderated to 2.0% in October. The rate based on the Retail Price Index, which is the more relevant measure of consumer price inflation for domestic households, remained unchanged at 1.6%.

The annual rate of change of Maltese residents’ deposits was stable at 4.5%. The annual rate of growth in credit to residents was also unchanged, at 2.6%.

Meanwhile, the cash-based Consolidated Fund deficit almost halved over the same month a year earlier.

The Economic Update is available on the website of the Central Bank of Malta www.centralbankmalta.org.