Business sentiment 'positive'

Business sentiment in Malta has taken a turn for the positive, according to a new survey published yesterday in Brussels by Eurochambers, the European umbrella organisation representing European business organisations.

The survey gauged European entrepreneurs' expectations for next year, including turnover, sales, exports, employment and investment.

Eurochambers said that expectations among the Maltese business community for 2007 are generally positive when compared to the performance attained this year.

The majority of respondents said they expect a better or at least the same level of business performance as in the current year. Only 12 per cent are expecting business to become worse, while 38 per cent said 2007 should be better and 49 per cent that it should remain stable.

Projections indicate a higher turnover, with 46 per cent expecting a better performance and 35 per cent predicting no change compared to this year. More domestic sales and more exports are generally predicted.

On the other hand, the projections for employment growth is negative with only 28 per cent stating they intend to employ more workers. Another 62 per cent said they will be keeping the same workforce while 10 per cent said they plan to shed some workers.

"The overall business sentiment that emerges from the survey is one of relative stability. It may be termed as a 'wait and see' attitude but with a dose of optimism," Eurochambers commented in its analysis of the Maltese results.

It observed that "there has been an improvement in business confidence in 2006 when compared to a rather sombre performance in 2005. This attitude could have permeated the vision for 2007".

The positive sentiment in Malta reflects the general mood in the EU. European companies are showing greater confidence for the year ahead and are expecting growth in all major economic indicators, according to Eurochambers.

The survey shows that Denmark has the highest hopes while Hungary is the most pessimistic about business prospects next year.

The Eurochambers survey was answered by 201 members of the Chamber of Commerce and Enterprise, with 36 participants coming from the manufacturing industry and 154 from the services sector. Another 11 members did not specify a sector.