Annual growth in business activity slightly above its long-term average

The Bank’s Business Conditions Index indicates that in October, annual growth in business activity rose marginally, and remained slightly above its long-term average.

The European Commission’s economic confidence indicator fell sharply in October, from its all-time high recorded a month earlier, though remaining above its long-term average. By contrast, employment expectations edged up when compared with a month earlier.

In October, price expectations increased across all sectors, except in the construction sector. They remained above their long-run average in all sectors.

Developments in activity indicators were mixed, as industrial production rose marginally on a year earlier, while retail trade contracted slightly. Labour market conditions remained favourable in September.

Residential building permits fell in September compared with their month and year-ago levels. In October, the number of promise-of-sale agreements rose, while the number of final deeds fell on a year-on-year basis.

In September, Maltese residents’ deposits decreased from their year ago level. This was mostly due to lower deposit balances held by financial intermediaries and firms. Meanwhile, annual growth in credit to Maltese residents edged up marginally.

In October, the annual inflation rate based on the Harmonised Index of Consumer Prices (HICP) and the Retail Price Index (RPI) declined further to stand at 4.2% and 3.7% respectively.

In September, the Consolidated Fund recorded a surplus compared to a deficit a year earlier.