The Central Bank of Malta's Business Conditions Index (BCI) fell slightly in May when compared with the previous month, suggesting that economic conditions remain significantly below their long-term average. By contrast, the Economic Sentiment Indicator (ESI) rose when compared with the previous month as confidence improved across almost all sub-components, particularly in the construction sector.
However, sentiment among retailers fell, the bank said in its Economic Update for June.
Despite the improvement in sentiment compared to April, the ESI remains well below the historical average and still suggests low confidence levels. In April, the volume of retail trade contracted significantly in annual terms. Similarly, growth in industrial production turned negative.
The unemployment rate rose as the number of registered unemployed increased further. However, the unemployment rate remains low from a historical perspective. Consumer price inflation eased in April. The annual inflation rate based on the Harmonised Index of Consumer Prices fell to 1.1%, while inflation based on the Retail Price Index edged down to 0.8%.
The publication also looks at public finance...
