Print

In June 2026

Regional economic growth slowed for the second consecutive month

The Regional Economic Activity Indicator (RIEA) shows that economic activity in the Region remained on a growth path, although at a slower pace than in the previous month, recording a slowdown for the second consecutive month.

As stated by DREM in the first release of the RIEA, in October 2017, its purpose is to “signal the behaviour of economic activity, namely with regard to its direction and the magnitude of fluctuations: whether it is in positive or negative territory, accelerations, decelerations and the identification of turning points”. Its quantitative value, therefore, assumes secondary importance and should not be regarded as a substitute for the real growth rate of Gross Domestic Product, which is calculated using a broader and more comprehensive set of statistical information, although a strong correlation exists between the two variables.

IRAE EN

Economic Overview – The economic situation in the Autonomous Region of Madeira in June 2026

Economic Activity

As previously mentioned, regional economic activity remained on a growth path in June 2026, although at a slower pace than in the previous month, recording a slowdown for the second consecutive month.

In the tourism sector, the number of overnight stays in tourist accommodation establishments, excluding local accommodation establishments with fewer than 10 beds,  decreased by 1.8%, deepening the decline recorded in May (-1.3%). Total revenue increased by 6.5%, remaining positive, although growing at a slower pace than in the previous month (8.1%). RevPAR continued its decelerating trend, increasing by 3.2%, following a 4.8% rise in May. The net bed occupancy rate, in turn, decreased slightly to 67.2%, compared with 67.6% in the previous month.

In the energy sector, electricity distribution increased by 3.7%, slightly below the 3.9% rise observed in the previous month. Diesel released for consumption, in turn, decreased by 7.0%, significantly deepening the decline recorded in May (-0.2%).

Regarding business dynamics, the ratio of newly incorporated to dissolved companies stood at 2.4 new companies for each company dissolved, slightly below the figure recorded in the previous month (2.5).

Qualitative Indicators

In June 2026, confidence indicators showed favourable developments in Manufacturing, Trade and Services. By contrast, the indicator for Construction and Public Works decreased.

Private Consumption

In the month under review, gasoline released for consumption increased by 1.0% year-on-year, showing a marked slowdown compared with the 6.9% growth recorded in May.

The outstanding balance of loans granted to households and non-profit institutions serving households (NPISHs) for consumption and other purposes increased by 7.7%, below the 8.7% recorded in the previous month. Meanwhile, withdrawals and purchases made through point-of-sale (POS) terminals using domestic cards increased by 5.2%, slowing from the 6.3% recorded in May.

Purchases of new light passenger cars declined by 7.9% year-on-year, reversing the 9.4% increase observed in the previous month.

Investment

In June 2026, investment indicators showed mixed developments.

Sales of light commercial vehicles decreased by 9.6%, reversing the 10.3% growth recorded in May. Meanwhile, the outstanding balance of loans granted to non-financial corporations decreased by 1.4%, easing from the decline observed in the previous month (-2.5%).

Cement sales decreased by 2.7%, deepening the 1.6% decline recorded in May. By contrast, the outstanding balance of housing loans granted to households and NPISHs increased by 9.5%, slightly above the 9.3% recorded in the previous month.

The bank appraisal value of housing increased by 18.3%, accelerating from the 17.3% rise recorded in May.

As regards the number of building permits, a year-on-year increase of 25.2% was recorded, above the 21.2% observed in the previous month.

External Demand

In June 2026, regional exports of goods decreased by 9.8%, deepening the contraction observed in the previous month (-6.8%). Imports of goods, in turn, increased by 6.1%, remaining positive but slowing significantly from the 23.8% growth recorded in May.

The movement of goods in the Region's ports remained positive, increasing by 4.2%, although at a slower pace than in the previous month (6.0%).

In air transport, passenger traffic at the Region’s airports increased by 2.4%, slowing from the 3.4% recorded in May.

Regarding withdrawals and purchases made through APTs using international cards, an increase of 3.7% was recorded, slightly above the 3.4% observed in the previous month.

Labour Market

In June 2026, the number of registered unemployed persons decreased by 11.0%, significantly deepening the decline observed in the previous month (-5.2%).

Job applications decreased by 10.5%, also representing a sharper decline than that recorded in May (-4.5%).

Job offers, in turn, decreased by 15.7%, deepening the 5.9% decline observed in the previous month.

Prices

The year-on-year rate of change in the Consumer Price Index (CPI) increased to 5.0% in June 2026, up from 4.6% in the previous month.

Goods inflation accelerated to 3.0% (2.7% in May), while services inflation increased to 7.3% (6.7% in the previous month).

The underlying inflation indicator, which excludes unprocessed food and energy products, increased to 4.4%, following 3.7% in May.

For further information, please access: