The annual growth in business activity declined in September when compared to August, and was slightly below its long-term average, the Central Bank of Malta said on Wednesday. 

Meanwhile, the European Commission’s economic sentiment indicator for Malta decreased and remained below its long-term average. 

At the same time, the employment expectations indicator increased in September and stood above its long-term average. 

Price expectations increased across all sectors, except among consumers, with the largest increase recorded by the retail sector.

The CBM released data from its business conditions index on Wednesday. Photo: CBM

Mixed developments in activity indicators

In August, industrial production rose while retail trade contracted from a year earlier.

Unemployment meanwhile remained low from a historical perspective. It increased marginally when compared with the preceding month but remained below the rate from a year earlier.

In August, residential permits were above the levels registered a year ago.

In September, both the number of residential promise-of-sale agreements and the number of final deeds were above those of a year earlier. 

During the 12 months preceding August, annual growth in Maltese residents’ deposits - forming part of the broad monetary aggregate M3 - accelerated.

Annual growth in credit to Maltese residents meanwhile rose at a faster pace when compared to the preceding month, reflecting a higher growth rate in credit to the general government. 

Harmonised Index of Consumer Prices 

In September, the annual inflation rate based on the Harmonised Index of Consumer Prices (HICP) fell to 2.1%.

While overall inflation in Malta exceeded the euro area average, HICP inflation excluding food and energy stood at 1.9% - well below the corresponding rate in the euro area.

According to the Retail Price Index (RPI), inflation in September dipped to 1.2% from 1.5% in August.

In August, the Consolidated Fund recorded a surplus, despite a large increase in government expenditure.

As a result, the surplus registered during the month was lower than that for the same month a year earlier.