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News - Economic Update 2018

16/10/2018

Economic Update: Issue 10/2018

The Central Bank of Malta has just published its latest Economic Update based on information available up to 15 October 2018.

In September, the Bank's Business Conditions Index (BCI) remained unchanged over the previous month, and continued to indicate above-average conditions. Economic sentiment fell marginally as lower confidence in the construction and industrial sectors offset higher sentiment in the services and retail sectors, and to a smaller extent, amongst consumers.

In August, tourism activity grew at a moderate pace in annual terms. Industrial production increased on the same month a year ago, while retail trade contracted.

Conditions in the labour market remained favourable, with the number of registered unemployed declining further.

The annual rate of inflation based on the Harmonised Index of Consumer Prices (HICP) rose to 2.4% in August. The rate based on the Retail Price Index, which is the more relevant measure of consumer price inflation for domestic households, stood lower, at 1.1%.

The annual rate of change of Maltese residents' deposits stood unchanged at 3.5%, while annual growth in credit to residents rose marginally to 2.6%. 

Meanwhile, the cash-based Consolidated Fund surplus narrowed compared with a year earlier. 

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

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