News - Economic Update 2019

19/09/2019 10:55:00

Economic Update: Issue 9/2019

In August, the Bank's Business Conditions' Index (BCI) eased when compared with the previous month, but still indicates slightly above-average conditions.

Economic sentiment fell marginally below its long-term average during the month. The most significant decreases were recorded in the retail and construction sectors.

In July, annual growth in the number of tourist arrivals moderated. Industrial production also rose at a slower pace compared with June. In contrast, annual growth in the volume of retail sales picked up.

Conditions in the labour market continued to be favourable, with the number of registered unemployed and the unemployment rate remaining low from a historical perspective.

The annual inflation rate based on the Harmonised Index of Consumer Prices (HICP) was stable at 1.8% in July. The rate based on the Retail Price Index (RPI), which is the more relevant measure of consumer price inflation for domestic households, eased to 1.7%.

Maltese residents' deposits rose by 5.2% in the year to July, while credit to Maltese residents increased by 6.5% over this period.

The cash-based Consolidated Fund recorded a slightly larger surplus compared with July 2018.

The Economic Update is available on the website of the Central Bank of Malta.