EMCS has been researching and tracking consumer confidence in Malta for a good number of years. The Consumer Confidence indicator for Malta as estimated by EMCS is a Harmonized Index as collected in many countries around the world. This report is based on a monthly telephone survey based on 1000 responses from the general population using a random sample.
As shown above the Consumer Confidence Index is showing signs of recovery in June 2020. The boost in the index could possibly be linked to many factors, some physiological of hope for better times ahead; others through more financial intervention in attempting to re-stimulate the economy; and some as people perceived a return to a “normal life” and restrictions removed.
The movements in the recent months are likely to be driven by the uncertainty surrounding the potential threat of the global pandemic COVID19 on citizens’ everyday lives, including their work and income.
Remarkably, although the outbreak of the Coronavirus in Malta began in March, a sharper fall in the Consumer Confidence Index was perceived in April, when the indicator fell drastically to -31.91, a level which was not registered in at least 8 years. The government had announced its first financial aid package on the 18th of March; presumably to kindle a degree of consumer confidence. Nevertheless, the drastic fall in the CCI during the month of April proves the lagged effects in consumers’ responses to changes in economic activity and the lack of interest aroused from the first financial package.
What is interesting though is some constructs that make up this index that can be viewed below.
On one hand the 12 months forecast of the general economic situation in Malta has turned positive in June 2020 and with a drastic recovery from the deep negative sentiment in this regard just 2 months earlier in April 2020.
Interesting to see the that the negative sentiment towards making any major purchases in the next 12 months, has reduced and is at par with the sentiment expressed in October 2019 when Malta was at the start of the turbulent political period.
We believe that this a very useful tool as a general economic predictor, especially in these turbulent times, as consumer sentiment is a good tracker of the psychological effect on economic performance. We could also easily include any particular interesting question or matter to research for certain sectors, at minimal cost, as part of the 1000 surveys done every month. Feel free to contact me on email@example.com to learn more on the Consumer Confidence Index.