The European Commission’s monthly survey of households and businesses in Malta showed that in November the economic sentiment index for Malta reached 109. This is 9% better than the historical average and 42% better than the level in November 2020.
The result for this year is also 4% better than the economic sentiment expressed in November 2019, that is before the pandemic started. In each surveyed sector optimism is currently better than the historical average.
A majority of 7% of Maltese households said that they expect their financial situation would improve in the coming year. Almost 15% more believe that our country’s economy will grow than those who believe it will shrink. This when in the EU a majority of 10% of households expect their national economy to continue to deteriorate next year.
Almost 15% more believe that Malta’s economy will grow than those who believe it will shrink.
In our country a majority of 17% of families said they feel they can afford to make large purchases at the moment and 4% expect that even in the near future they will still be able to do so. This while a majority of 7% believe that they will manage to save more despite this higher consumption. In Europe, by contrast, a majority of households say they cannot afford considerable consumption. Moreover, they believe that unemployment will continue to rise, contrary to what Maltese families’ conviction that joblessness will continue to fall.
A majority of 7% of industrial operators surveyed in Malta said they had increased production in recent months. A majority of 12% of operators said they expect further growth in the coming months. So much so that these companies claimed to have around four months of guaranteed production in orders they have already received. 14% of factories are therefore anticipating that they will have to increase their demand for more workers.
A majority of 12% of industrial operators in Malta said they expect further growth in the coming months.
Even more optimistic were the operators in the services sector. A majority of 20% of these businesses have reported improved activity in recent months. More than 30% of operators expressed expectations that demand will continue to rally in the coming months. As a result, almost a third of companies in this sector anticipate that they will need to hire more workers.
Even in the retail sales sector, sentiment is better than the historical average. A majority of 13% of those interviewed said they expect an improvement in their activity in the coming months, and almost one in ten reported having already had an increase in orders.
In construction, a majority of 14% of firms claimed they need more workers. This is in a context that these operators have on average a backlog of work for more than seven months, or almost one and a half times the historical average. Nevertheless, 7% of construction firms anticipate that orders will continue to increase.
The European Commission’s survey confirms that Maltese firms are well on the road to recovery while households remain in the strongest financial position of all Europe.