Business and consumer confidence in construction up as retail slumps

Economic sentiment deteriorated in September as improvements in confidence for the construction, services and industrial sectors was offset by a decline in the retail sector.

The figures come from the Central Bank of Malta's economic survey released today.

Confidence in the construction sector improved in September as a result of increased employment and improvement in order books. An increase in building activity was reported by respondents and a higher number of firms said they expected a rise in the selling prices in the following months.

But in terms of consumer confidence in regards to retail, the figure more than halved since August, while nonetheless remaining above the long-term average, according to the report.

The decline in retail was evident in all subcomponents such as business activity of the past three months and next three months, as well as stocks of finished goods. The most significant difference was the response for the share of businesses expecting activity to improve over the next three months. “Additional survey data for this sector indicate that a smaller share of firms expected prices to rise over the three months ahead,” the report added.