Annual growth in business activity remains broadly unchanged and still above long-term average – CBM

The Central Bank of Malta’s Business Conditions Index indicates that in July, annual growth in business activity remained broadly unchanged when compared to the previous month, remaining above its long-term average. 

The European Commission’s economic confidence indicator rose when compared to June, while the employment expectations indicator fell. Both remained above their long-term average. 

In July, price expectations stood below their year-ago level in the retail sector, and to a lesser degree, in industry. By contrast, price expectations in services and construction were significantly above the July 2022 level. Price expectations among consumers also edged up compared with a year earlier, albeit to a lesser extent. 

While activity indicators were mixed, those for the labour market were very positive.

Both Maltese residents’ deposits and credit expanded at a marginally faster annual rate in June. 

Residential building permits declined slightly in June compared with month-ago levels but were higher in annual terms. In July, the number of promise-of-sale agreements rose on a year-on-year basis, while the number of final deeds of sales fell. 

The annual inflation rate based on the Harmonised Index of Consumer Prices (HICP) and the Retail Price Index (RPI) declined further in July, to stand at 5.6% and 4.7%, respectively. 

In June, the Consolidated Fund recorded a higher deficit compared to a year earlier.