27/10/2026 14:20:00

Central Bank of Malta Business Dialogue Publication – Fourth edition of 2026

The latest business dialogue held between the Central Bank of Malta and non-financial corporations shows that in the third quarter of 2026, many of the firms contacted continued to note stable or improving conditions, but the net balance reporting an amelioration in current conditions, declined to 37% from 41% in the previous quarter. Among the sectors surveyed, the manufacturing sector had the highest share of firms reporting an expansion in activity.¹

Near-term expectations for business activity also declined slightly, with a net 41% of firms anticipating higher activity, down from 49% in the previous survey round. The construction and real estate sector reported the most favourable outlook, followed by the services sector. Expectations in the manufacturing sector, as well as those of wholesalers and retailers were more cautious.

In this round, the share of firms reporting higher cost pressures decreased slightly to 81%. Yet, the net balance of firms raising selling prices rose only marginally and stood lower, at 42%. This indicates that several firms are likely absorbing cost increases rather than passing them onto consumer prices.

The net share of firms intending to increase investment declined from 27% to 15% in the quarter under review, with investment driven mainly by diversification efforts and efficiency gains. Responses collected in the latest round of contacts also suggest a positive pace of job creation, though at a slight slower pace compared from the previous quarter.

This publication includes a box analysing firms' unit cost expectations over the past few years.

The full publication is available here. The Business Dialogue survey can also be accessed in an interactive way through its dedicated  dashboard.

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¹ The views expressed are solely those of the companies interviewed and do not necessarily reflect the views of the Central Bank of Malta. 

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