The latest business perceptions survey, carried out by the Central Bank through other institutions and reported in the latest edition of the Quarterly Review, says that both business confidence and consumer confidence are booming.

The initial results, based on a sample of 165 firms, indicated that compared to the first quarter this year, on balance turnover rose significantly during the second quarter.

Selling prices increased marginally, with more than three quarters of respondents reporting unchanged selling prices over the March quarter, while both costs and profits were higher.

With regard to employment levels, on balance participants indicated that their workforce expanded.

Looking ahead, respondents were generally anticipating increased turnover and higher costs and profits during the third quarter this year.

Some prices were expected to increase, to a lesser extent. In addition, employment levels were expected to rise.

Over the next 12 months, the majority of respondents plan to increase their investment outlays and add to their labour complement.

During the first quarter of this year, the Maltese economy grew by 3.5 per cent in real terms, the Central Bank reported, driven by higher net exports and consumption.

Over the same period, RPI inflation trended downwards to 2.4 per cent in March, a full percentage point below the peak attained last September and reflects the unwinding of the base effect related to earlier increases in utility and fuel prices.

In the labour market, LFS data for the first quarter show that the unemployment rate dropped to 6.8 per cent, one percentage point below that recorded a year earlier.