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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 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.

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 .

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.....

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.

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