EMCS conducts a monthly Consumer Confidence Survey (Malta) for the European Commission - August 2020
Following an upward spike in Consumer Confidence in July 2020, the overall consumer sentiment, which is a major indicator from a consumers’ perspective, started to deteriorate once again in August, based on research conducted by a leading business consultancy firm EMCS, on behalf of the European Commission. Due to this decrease, the index dipped back into negative territory meaning that in general, respondents are more pessimistic. This report is based on a monthly telephone survey based on 1000 responses from the general population using a random sample.
The EMCS Consumer Confidence Index (CCI) reading decreased to -14 in August 2020 from +5.11 in July 2020. This drop in the index could possibly be linked to the fact that throughout the month of August, Malta has seen a dramatic increase in the number of detected COVID-19 cases, which resulted in a lower sentiment regarding the general economic situation, unemployment and capability to save. This is coupled with the fact that the Maltese authorities reintroduced restrictions following a spike in COVID-19 cases.
Indeed, Malta’s index, which stood at -14 in August, is in line with the euro area (-14.7) and EU (-15.5) points.
Other key findings of the survey were:
- Many of the respondents indicated that the financial situation of their household deteriorate significantly over the last 12 months when compared to July results.
- When asked about the general economic situation for the previous 12 months, respondents were more negative than in July and their perceived deterioration is expected to be more severe over the forthcoming 12 months.
- When it comes to change in prices, more respondents believe that prices have been decreasing marginally over the past twelve months. Nevertheless, more people have a pessimistic expectation for the next 12 months as they perceive prices will go up and thereby worsening their economic situation.
- In general, respondents indicated that their outlook for the forthcoming 12 months is that unemployment will drastically increase when compared to July, coupled with the fact that they will be less able to save.
- On balance, the sentiment towards making any major purchases in the next 12 months, has improved slightly from last month, though still in negative territory.
The relatively more pessimistic respondents were females, those aged between 30 to 49, those who have completed up to tertiary education, and those households who earn less than €10,500 annually.
It is important to point out that the survey requests the respondents’ perception of the current situation. However, the actual situation may differ from this perception.
Should you require more information on the consumer sentiment survey, email email@example.com or phone 27772777.