Malta’s economic confidence reaches record levels

A monthly survey conducted by the European Commission found business sentiment in Malta to be at record levels in December 2025, indicating a high degree of confidence across all sectors.

The Economic Sentiment Indicator (ESI) survey five sectors – industry, services, construction, retail trade and consumers – with December’s results increasing from the previous, moving further above its long-term average. It stood at 120.6, higher than the 92.8 level observed a year earlier, and the November outcome of 112.0.

This, said the Central Bank of Malta (CBM), which publishes the ESI in its monthly economic update, is the highest level recorded since November 2002, when data for Malta was first recorded.

Sentiment improved across all sectors except consumers – although sentiment in the latter remains strong – with the most significant increases being observed in the services sector and in industry.

The increase in the overall sentiment in December was mostly driven by industry and the services sector.

Sentiment in all sectors stands above the long-term average, especially in the services sector.

Business confidence, sector by sector

Confidence in the service sector is measured through survey questions relating to the business climate, the evolution of demand in the previous three months and demand expectations for the subsequent three months. In December, it stood at 56.6 – well above its long-term average of 19.9, driven especially by firms’ assessment of the business situation over the past three months.

Confidence in industry is measured through survey questions relating to expectations about production over the subsequent three months, to current levels of order books and to stocks of finished goods. In December, it rose to 12.0, from -3.1 the previous month, considerably above its long-term average of -4.3. Contrary to the previous month, respondents assessed their overall order books to be above normal levels, while production expectations for the months ahead stood more positive. On the other hand, a larger share of firms assessed their stocks of finished products to be above normal levels.

Confidence in the construction sector is measured through two survey questions relating to order books and employment expectations over the subsequent three months. In December it stood at 51.9, an increase from the 43.4 recorded in November and far above the long-term average of -6.6. Respondents reported above-normal orders and anticipated employment to increase in the coming months – although the CBM warns that the results need to be interpreted with caution given the low response rate among enterprises.

Retail confidence is measured by respondent’ answers to the present and future business situation and stock levels, with above normal stocks of finished goods having a negative effect on the overall indicator, and vice versa. In December, it stood at 22.3, up from 16.3 in the previous month and well above its long-term average of 0.5, driven by an improvement in retailers’ assessment of sales over the past three months and lower reported stocks of finished goods. On the other hand, their expectations of business activity over the next three months decreased.

Consumer confidence is measured through survey questions relating to households’ assessment and expectations of their financial situation, their expectations about the general economic situation and their intention to make major purchases over the subsequent 12 months. This indicator decreased in December, going from the 8.3 recorded in November to 5. Nonetheless, it remained above its long-term average of -9.5. The less positive sentiment in December was attributed to the deterioration in all the forward-looking components of the indicator, although all components remained positive.