Increased optimism among businesses and consumers

Malta's economic confidence strengthens, staying ahead of the curve compared to the rest of Europe.

A monthly survey carried out by the European Commission among businesses and consumers among all EU countries reveals that in May Malta saw a 1% improvement in economic sentiment compared to a month earlier. In contrast, across Europe confidence has remained stable and is 1% lower than Malta’s.

In industry production increased in May after months of decline but a large majority of firms told the Commission that orders are declining. This reflects the negative international situation. However, Maltese factories have orders that will take an average of four months to fulfil.

In Malta sentiment among families is better than the historical average, and much better than across Europe. The Commission’s survey indicates that most families expect to increase their savings in the coming months. The number of those expecting an increase in prices has decreased since the Stabbiltà scheme came into force.

This is reflected in the feeling among retailers, which is above the historical average. Most Maltese shops have reported increasing sales in the last three months, and there are predictions that sales will increase even further in the coming months.

Operators in the building sector also have a better sentiment than the historical average. Although there has been a slight drop in activity in past months, companies reported that they have orders to guarantee almost 11 months of production.

In services, a majority of firms said they had an increase in activity in recent months and that they expect this will continue, so much so that a majority of 10% of operators plan to hire more workers.

Photo: Oleksandr P

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