Malta’s consumer and industrial confidence levels remain very close to their all-time lows, according to the results of the EU’s May economic sentiment surveys published this week.

Apparently fuelled by rising electricity costs and an uncertain local and international economic climate, the confidence levels of Maltese industrial enterprises in May were just three points above their all-time low, while consumer confidence was just four below its record low.

Since March 2008, when the economic crisis began to be felt, consumer economic confidence as a whole, confidence in the financial situation of households and bank savings, has all plummeted. But, on the other hand, employment expectations appear to be improving despite the deterioration of the European and global economic situation that so many jobs in Malta depend upon.

Consumers, according to the survey, are still planning to make major purchases over the coming 12 months but seem to be putting on the brakes on such purchases to a certain extent, for the time being. Additionally, they also cite that consumer prices have been dropping over the past 12 months, and that they expect prices to fall further, if only slightly, over the coming year.

In terms of the industrial sector’s employment and production expectations, order books, production trends and export order books all remain at concerning lows.

Both the consumer and industrial indices have plummeted dramatically since last spring. Over the time frame, Maltese industrial confidence nosedived from a score of +18 to a reading of -23 this month, while consumer confidence as a whole has plunged from -3 to -37.

Maltese consumers’ all-time low confidence level was -40 and had been reached in April 2008, while industrial confidence had hit rock bottom in March 2008 at -29.

By way of comparison, EU average industrial confidence May stood at -34, more pessimistic than the Maltese reading, while the EU average consumer confidence, at -31, was more positive than the Maltese one.

The individual components of Maltese industrial confidence appear to be on a concerning downward trend. Production expectations have dropped from a survey score of 57 in March 2008 to 12 in May 2009, while order books have decreased from -5 to -64 over the period.

Malta’s industrial sector has seen production trends observed over recent months dropping from a confidence score of 44 in March 2008 to -35 this month, while export order books have plummeted from -4 to -64.

Employment expectations also appear grim, having registered a drop from -6 in March 2008 to -38 in May 2009.

While consumer confidence, albeit more fickle in nature, had plunged somewhat drastically between March 2008 and this month, the index had improved by three points between April and May.

Since March 2008, expectations over the financial situation of households deteriorated from -4 to -28 this month, although the level had improved over that of April, which had stood at -36. In terms of consumer economic sentiment for the next 12 months, confidence fell from 7 in March 2008 to -28 in May of this year, but still better than April’s -33. Maltese consumers are, meanwhile, adopting a bleaker view for their savings over the coming year.

The March 2008 confidence level had stood at -28 but has now dropped to -54. In terms of the country’s general economic situation over the last 12 months, Maltese consumers have become increasingly pessimistic, with the score dropping from 12 in March 2008 to -46 in May 2009, while bank savings at present, according to the survey, have dropped from a confidence level of -33

to -50.