The Central Bank of Malta reported a slowdown in the recovery of economic activity throughout November.

In its economic update on Monday, the bank said that while its business conditions index was unchanged when compared to the previous month, "the stabilisation in the index suggests that the pace of recovery in economic activity has slowed down, and that it has been adversely affected by the re-introduction of some containment measures".

"Although recent readings are higher than the lows for May and June, the index continues to signal low levels of economic activity, which reflect the weak economic environment which currently prevails in the context of COVID-19."

The Central Bank also noted that the European Commission’s economic sentiment indicator deteriorated in November when compared to the previous month.

Drop in number of development permits for commercial purposes

Confidence fell sharply in industry and, to a more limited extent, in the services sector and among consumers. These developments were offset by improved sentiment in the construction sector and among retailers. Sentiment remained negative in all sectors, bar the construction sector, it noted.

Meanwhile, in October, industrial production rose marginally while the volume of retail trade fell at a slower pace in annual terms.

The number of development permits for commercial purposes fell, following an increase in September. At the same time, the number of residential development permits contracted at a slower pace when compared with a month earlier.

"The labour market continued to show resilience. Indeed, the number of registered unemployed fell once again. The unemployment rate was unchanged from the preceding month, and remained relatively low from a historical perspective and compared to euro area member states.

Most of the data reported in this issue of the bank's economic update (attached below), refer to October, reflect the resurgence of COVID-19 cases and the introduction of additional containment measures.

The latest data for the European Commission’s economic sentiment indicator and the Bank’s business conditions index refer to November.