Malta registered the second highest confidence and economic sentiment across the EU last month, according to Eurostat.

The EU statistics agency said Malta’s sentiment indicator hit 115.6, just below that of top-ranked Croatia.

The index takes into consideration confidence indicators for industry, services, construction, retail and consumers. The indicators are compiled through surveys.

In March, the increase in industrial confidence slowed down to 2.5 per cent from 6.7 per cent the previous month.

The survey of industries found negative expectations for export order books and saw growth in employment expectations slow down to 18.8 per cent from 39.3 per cent in February.

The services sector registered the highest increase in confidence in five years, at 31.9 per cent. Employment expectations in this sector for the next three months grew by 23.3 per cent.

For the third month running, confidence in the retail trade sector registered positive growth but slowed down to 5.7 per cent from 7.9 per cent in February. On the downside, confidence in the construction sector slipped by 5.8 per cent as it reversed growth in the first two months of the year. Nonetheless, employment expectations among construction companies were on the increase.

Consumer confidence also slipped by 1.7 per cent in March as it worsened from February’s minus 1.2 per cent. However, consumers expected the financial situation of households over the next 12 months to improve with the sub-index registering an increase of 1.2 per cent.

Consumers also expected the general economic situation to improve with the sub-index marking an increase of 7.8 per cent.

The government welcomed the news, saying the figures were additional proof that economic policy was encouraging a climate of optimism.

“The government is committed to continue working so that the dynamism shown by companies and families is translated into more positive results,” the government said.