Economic activity remained above-average in March, with buoyant labour market conditions and expansions in industrial production and tourism, the Central Bank said in an economic update. 

Indexes related to business conditions and economic sentiment both dipped marginally when compared to the previous month, though they remained substantially above average. 

The Central Bank found that price pressures moderated slightly in February, with the annual rate of inflation based falling to 1.2 per cent. Malta's s nominal harmonised competitiveness indicator (HCI) dropped by 0.7 per cent in February when compared with a year earlier - the first drop since 2015 - with Central Bank analysts saying this suggested an improvement in Malta's international competitiveness.

In February, the annual rate of change of retail sales turned negative, the Bank found. 

Maltese residents’ deposits rose by 11.7 per cent when compared with the same month of 2016, while credit to residents increased by 2.4 per cent. 

During the second month of 2017, the Consolidated Fund balance registered a surplus of €46.5 million, €24.9 million more than a year earlier. 

The Bank's latest Economic Update is based on information available until April 12.