Consumer confidence improves as business sentiment flops
The Central Bank said today that consumer confidence improved in the second quarter, while business sentiment went down.
Quoting its ongoiing index, the bank said the consumer confidence indicator edged up during the second quarter of 2011, though the balance of replies remained negative. At -38 in June, the index stood three percentage points
above the corresponding level in March.
Consumers’ expectations regarding the unemployment outlook improved, as did their assessment of the general economic situation and of their own financial position over the subsequent 12 months.
Other consumer survey information showed that, on balance, respondents expected prices to increase in the following 12 months, though inflation expectations appeared to have moderated slightly during the quarter. Moreover,
the number of respondents believing that, in view of the general economic situation, the time was not appropriate to make major purchases increased.
BUSINESS SENTIMENT DETERIORATES
The Central Bank also said that business sentiment deteriorated in the second quarter of this year.
It said the deterioration was particularly marked in the manufacturing sector.
The seasonally-adjusted industrial confidence indicator turned negative in May after having been in positive territory for eight months in a row.
Compared with March, the indicator fell by 15 percentage points, to -8 in June.
"The deterioration in confidence was mainly propelled by less optimistic production expectations and by a higher number of respondents reporting weak
order book levels. To a lesser extent, it also reflected an accumulation of stocks of finished goods," the bank said.
In line with the drop in sentiment, employment expectations turned negative in June. Furthermore, a large number of participants indicated insufficient demand as the main limitation on business expansion, with respondents saying that the current production capacity was more than sufficient to meet demand. In the second quarter, the majority of manufacturers also anticipated a fall in their selling prices over the subsequent three months.
The bank said its index turned negative in all broad categories, namely consumer, intermediate and investment goods. Specifically, confidence fell among firms in the electronics sector, pharmaceutical firms, manufacturers of rubber & plastic products and fabricated metal. On the other hand, sentiment improved in the printing & reproduction media sector.
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Mr Victor vella
Aug 26th 2011, 08:33
Nixtieq nuri il-bassezza li waqhom fihom xi bloggers mercinarji tal-partit nazzjonalista. Jekk tikteb fuq il- hmieg ta` dan il-gvern jew turi kif jista` wiehed jaghmel l-affarijiet ahjar jghidu `doom and gloom. Meta tghid il-kritika tieghek fuq il-gvern jghidu li int laburist u jzeffnu lil Joseph Muscat. Wiehed blogger li jidher li ghandu esperjenza mal-pazjenti ta` Mount Carmel ghajjar lin-nies li jghidu u ma jaqblux ma dan il-gvern bhala mgiegen u qabilhom ma dawn il-pazzjenti. Jista` jkun li dan il-bniedem li mhux se nsemmi ismu jew kien pazjent Mount Carmel Hospital jew ghandu xi familjari ghax jidher li iktar jifhem biex jaghajjar lil minn jikkritieka dan il-gvern b`dawn il-pazjenti msieken milli biex jigvologi xi argument. Ghalkemm dawn huma nies nazzjonalist li huma ftit li lesti johorgu il-hdura li ghandhom fl-istonku taghhom. Biex jghidu per ezempju l-argument taghhom ghalfejn jaghjru li min ma jaqbilx maghhom `zero`. Dawn il-ftit qed juru bic-car li dan il-gvern huwa veru regim li lest ikisser li kull min lest jikkritieka b`mod oggettiv lkil dan il-gvern. Tal-mishja.
Mr Joseph E Briffa
Aug 25th 2011, 21:52
@Peter Murray...Many thanks for your reply. I must say however that I am disappointed by your answers or the lacvk of them. You have refused to say whether you live in Malta, whether Peter Murray is your real name, what kind of things you would like to see improved. You surely can't have the state of the economy in mind: with an unemployment rate standing at 4.3% I don't think Malta is doing badly. If one quotes other economic and social indicators, one can't complain - one car per adult of population, an everage of 2 or 3 TVs per household, 3/4 of the population own their own house (spacious houses I should have said and furnished with all amenities); 2/3 of households have access to the internet; half the Maltese population had a holiday abroad in the first half of this year; savings in local banks add up to Eur10 billion plus holdings in MGS total Eur5 billion; even 10 year olds have mobile phones with cameras and videos; all issues of Government Stocks are oversubscribed; a healthy population barring the several hundreds that are obese; even village folks are decently dressed; a first-class state hospital which competes with the best private hospitals in Europe; a new public transport service which is on par with that in major sities of Europe.The economy is still growing, inflation is under wraps, budget deficit is below 3% of GDP, national debt is 78% of GDP and both are being reined in.There is peace and quiet, crime rate is low. There is no industrial unrest. The average wage stands at Eur!6 000, the min wage is Eur8 000, GDP per capita is over $21 000. If you feel the government is failing......to deliver what, may I ask? Can you be more specific?
Mr John Said
Aug 25th 2011, 15:40
Yesterday i went for a meal with my family, we paid over 300 euro between 6 adults and 2 young children ( its not a 7 Euro pizzeria), guess what, the place was packed, and they could hardly find an extra chair for my 3 year old nephew. And the restaurant is situated in a big square in Valletta, adjacent to an other restaurant which was also packed. More or less i estimate there where between 400 to 600 people in both restaurants. This is the forth time i have been there this summer and its always been the same!
And by the way, I choose to go to Valletta because of the parking, as it is much easier to park there in the evening than in buggiba or sliema, as these areas are always a night mare to park, some times even to walk around.
Morale of the story:
Either for a 7 Euro pizza or a 4 course meal, people in malta do go out and spend money, they do it according to their budgets!
If you can not afford to go out and spend say 40 euro for a light meal let me suggest that if you smoke one maybe two packets of cigaretts less in a week, ask your wife to skip an appointment with her nail technician/ hair stylist/ yoga or Zumba lesson once every two weeks, walk a bit more and use your car less, maybe even sell the every day car and just keep your sunday car, try and make the wine bottle last two instead of one evening at home......... i could go on for ever mentioning all the things that we consider to be normal but infact they are comodities which we got use too and find it hard to do without.
So thank God, and the PN government for all the good the maltese families have achieved in the last 25 years, things we only use to see on a black and white tv in the 80's!!!!!!!!!
Mr Joseph E Briffa
Aug 25th 2011, 13:49
@ Peter Murray......I'm sorry for you and your negative outlook on everything under the sun in Malta. I don't know whether you are a foreign settler in Malta or whether you are a Maltese socialist. If you are a settler and find life im Malta so miserable, I fail to undertsand why you settled here in the first once you complain about everything. If you are a socialist or paid by the opposition, no wonder your comments are so negative. Having said that, could I ask you to kindly highlight the areas where this government has failed.I look forward to your reply. And please I expect some sense.
Mr Peter Murray
Aug 25th 2011, 18:53
Dear Mr.Briffa,
I, like you, am also sorry...sorry that you can't see whats in front of your face and what I am is no concern of yours as I would not be so presumptive and peevish to inquire about your origins or provenance.Yet again you fail to address the issues raised and prove my assertions wrong , insead choosing to coarsely concentrate on personal issues and I'm afraid that I do not have enough space to indicate all the faults and shortcomings of this present,but thankfully not for much longer, government and that the logo TGIF (Thank God Its Friday)now signifies The Government Is Failing,and to consider otherwise is delusional to the point of derangement.Have a nice evening,sir.
John Zammit-Spiteri
Aug 25th 2011, 11:46
what a land of doom and gloom,
As someone already mentioned, Malta is such a disaster that all the restaurants are always full. How strange amidst all this crises.
We should all emigrate to erithrea or somalia , these have a slightely different opinion!
sigh!!!!! such dark clouds
Really some people prefer to live under the times of bulk buying and when we sought entertainment in a budget were we had cost cuts of 2 mills on lunceon meat cans , and 5 mills on cornedbeef cans and we had wage freezes , and we had to pay lm50 to the minister for a colour tv, and to try and sneak in a video recorder which cost us a whole 2 years of wages lm800 .
Just imagine I do miss those sickening wonderful days of austerity. I miss those lovely candle light lejber suppers on every christmas eve. And I do miss those wonderfull telephone connections where we got connected wonderfully with every tom dick and harry whenever it rained.
Such glorious days of the past.
This government is really cruel for making us so comfortable. Shame on the prime minister for never giving us a reduction on tonn taz zejt and corned beef. And Oh I forgot silly me, how thoughtless of me to miss those chugging fumes in the luggage hall of the so modern airport we had in the 70's .
I do miss it all , maybe lejber will promise them back for us to try and entice me to vote.
Mr W Cassar
Aug 25th 2011, 13:45
Nothing more than blue blinkers here.
Floater.
Mr Anthony Pace Gouder
Aug 26th 2011, 11:20
Apparently (only in Malta) some people tend to measure the economy by 'Restaurant Clientele Business' (abbreviate to RCB). Surely they haven't taken into account ALL the restaurants on the island, and have excluded those in Hotels .
Sooner or later they will also start considering 'Timpana consuming' at the local beaches !
Pity that EU economists and statisticians haven't yet discovered this system yet!
Then they must replace GDP with RCB when calculating the performance of our economy .
John Zammit-Spiteri
Aug 25th 2011, 11:43
what a land of doom and gloom,
As someone already mentioned, Malta is such a disaster that all the restaurants are always full. How strange amidst all this crises.
We should all emigrate to erithrea or somalia , these have a slightely different opinion!
sigh!!!!! such dark clouds
Really some people prefer to live under the times of bulk buying and when we sought entertainment in a budget were we had cost cuts of 2 mills on lunceon meat cans , and 5 mills on cornedbeef cans and we had wage freezes , and we had to pay lm50 to the minister for a colour tv, and to try and sneak in a video recorder which cost us a whole 2 years of wages lm800 .
Just imagine I do miss those sickening wonderful days of austerity. I miss those lovely candle light lejber suppers on every christmas eve. And I do miss those wonderfull telephone connections where we got connected wonderfully with every tom dick and harry whenever it rained.
Such glorious days of the past.
This government is really cruel for making us so comfortable. Shame on the prime minister for never giving us a reduction on tonn taz zejt and corned beef. And Oh I forgot silly me, how thoughtless of me to miss those chugging fumes in the luggage hall of the so modern airport we had in the 70's .
I do miss it all , maybe lejber will promise them back for us to try and entice me to vote.
j brincat
Aug 25th 2011, 10:30
Improved but still negative at 38% Shows the signs of time.
(jb)
Mr Lawrence Fenech
Aug 25th 2011, 10:22
Is this survey by the Malta Central Bank or some bank in Germany?
Mr Peter Murray
Aug 25th 2011, 10:17
SO much spin my head is dizzy.How many consumers did they ask and how many responded and from what sections of society ?What an absurdly unsupporetd claim to make and yet again again the Central Bank(what use is it nowadays?) is reduced to acting as research agency and as a barometer for consumer expectations.TGIF used to mean something other than The Government Is Failing.
Brian Gatt
Aug 25th 2011, 10:45
the use of the Central Bank is that Dr Gonzi can have an entity under his control where he can place his Blue eyed boys in cushy jobs earning thousnads.....
Mr W Cassar
Aug 25th 2011, 10:13
Ebay is doing well :)
Mr R ferriggi
Aug 25th 2011, 09:56
frankly,,, honestly,,,,,,, FROM WHERE did they get this positive feedback??
some PN meeting survey or what??
my humble opinion is:
cost of living has to go down, fuel prices have to go down, utility prices NEED to go down, wages need to move again after years, taxes need to go down.
the COL on these islands is too high for their own good.
the main problem is that the government is NOT DOING ANYTHING really to shock the economy into motion again.
and by the economy i do not mean simply - the construction sector.... as is the myth locally.
C. Spiteri
Aug 25th 2011, 10:18
You might have a humble opinion, but you seem to be living in an area where money grows on trees without even the need to water them - "cost of living has to go down, fuel prices have to go down, utility prices NEED to go down, wages need to move again after years, taxes need to go down. "
Joseph Vassallo
Aug 25th 2011, 10:25
Oh Woe is me! Reading this makes me want to top myself. I hope it's not all true.
I went walkabout at Bugibba last night (every night actually) and all the restaurants, including their outside-tables were full to capacity mostly with Maltese-speaking patrons. Where's the money coming from then? The lotto?
Come on Mr R.... don't be so pessimistic ple e e ase (with a cherry on top).
Mr Charles Falzon
Aug 25th 2011, 11:06
@ Mr J Vassallo.......havin pizza for EURO 7.00 ta mhux fillet....alla hares m ghandniex 7 ewro!!!!!
Mr R ferriggi
Aug 25th 2011, 11:56
it is not good enough for the authorities to just say '' we will weather the recession''.
this is not enough.
it is the elected governments DUTY to FIGHT inflation. this is why we elect them.
we do not elect them for favours and to cut ribbons.
we have to FEEL an effort is being made to combat the international pressure.
it is easy to just shove the international recession onto the common hard-working people.
i feel the situation here is not in any way critical,,,, but steps need to be taken. it is not good to base the legislatures plans on the elections only.
Mr W Cassar
Aug 25th 2011, 13:12
@Mr Charles Falzon
7Euro here ...7Euro there... who cares right... but it all adds up... then comes the bills and you will need that 7Euros
Get serious Sir.