Consumer confidence plunged to a record low of -41 in March, the Central Bank of Malta reported in its Quarterly Review, issued today.
It said that all the components of the index declined, particularly households' assessments of the general economic situation and their own financial position over the coming 12 months.
Respondents were also more pessimistic about their ability to save and about job prospects.
The decline in sentiment was spread across most occupational segments.
Additional survey data showed that on balance, compared to last December, a larger number of consumers expected prices to rise in the coming 12 months. Moreover, in view of the general economic situation, the number of respondents believing that the time was appropriate to make major purchases remained roughly unchanged.
Industrial confidence
After having risen in the December quarter, industrial confidence among Maltese manufacturers remained practically unchanged during the first quarter of 2011. In fact, the seasonally-adjusted indicator fell by one percentage point in March from eight in December, remaining in positive territory and above its average level for 2010.
After having declined during the second half of 2010, confidence among service providers rose to 25 in March from 13 in December . This reflected an improvement in demand expectations for the subsequent three months, a more favourable business situation and an increase in demand in the previous three months.
The seasonally-unadjusted indicator for the construction industry, improved during the first three months of 2011 – remaining, however, in negative territory. The relevant index stood at -19 in March, 16 percentage points above the December level and 12 percentage points higher than the 2010 average, the Central Bank said.