The Business Conditions Index eased slightly in December over the previous month, as economic sentiment fell as lower confidence within the industry and retail sectors as well as among consumers offset higher confidence in construction and services.

This was one of the conclusions of the Central Bank of Malta's Economic Update based on information available up to January 14, 2019.

In November, tourism activity increased at a slower pace in annual terms. Industrial production rose, while retail trade fell on a year earlier.

Conditions in the labour market remained favourable as the number of registered unemployed remained low from a historical perspective and the unemployment rate declined further on year ago levels.

The annual rate of inflation based on the Harmonised Index of Consumer Prices moderated further to 1.4% in November. The rate based on the Retail Price Index, which is the more relevant measure of consumer price inflation for domestic households, was stable at 1.6%.

Maltese residents’ deposits grew by 4.6% in the year to November, while credit to residents grew by 3.5%.

Meanwhile, the cash-based Consolidated Fund recorded a deficit in November.

The Economic Update is available on the website of the Central Bank of Malta www.centralbankmalta.org.