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News - Economic Update 2019

19/11/2019

Economic Update: Issue 11/2019

In October, the Bank's Business Conditions' Index (BCI) fell when compared with the previous month, and started to suggest slightly below-average conditions.

Conversely, economic sentiment edged up and remained above its long-term average. Higher confidence in the services and construction sectors, and to a lesser extent in industry, offset lower sentiment in the retail sector and among consumers.

In September, the number of tourist arrivals rose on a year earlier, albeit at a slower pace when compared with August. Similarly, industrial production increased at a slower rate. The volume of retail trade grew at a faster annual pace compared with a month earlier.

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) eased to 1.6% in September. The rate based on the Retail Price Index (RPI), which is the more relevant measure of consumer price inflation for domestic households, also moderated to 1.4%.

Maltese residents' deposits grew at a faster annual rate of 5.6% in the year to September, while credit to Maltese residents rose by 6.2% over this period.

The cash-based Consolidated Fund recorded a deficit compared with a surplus a year earlier.

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

 

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