In October 2024

Economic growth of the Region accelerated

The Regional Economic Activity Indicator (RIEA) reveals that, in October 2024, the regional economic activity reinforced its growth trajectory.

As previously mentioned in the first release of the RIEA, in October 2017, the purpose of the indicator is to "signal the behaviour of economic activity, particularly regarding the direction and magnitude of fluctuations: whether it is in positive or negative territory, accelerations, decelerations, and the identification of turning points." Therefore, its quantitative value assumes secondary importance, as it is not intended to replace the actual variation in Gross Domestic Product (GDP), which should be assessed with a more comprehensive set of statistical information, although there is a strong correlation between the two variables.

Economic Overview for October 2024 – 7 Topics

The Regional Directorate of Statistics of Madeira presents a concise analysis of the main short-term indicators, divided into themes. It is important to note that many of the changes mentioned refer to three-month moving averages, a common technique in economic reports to smooth out irregularities and reveal trends.

Economic Activity

As previously mentioned, the regional economic activity in October 2024 continued on a positive growth trajectory, albeit at a faster pace than in the previous month.

The performance tourism sector played a significant role in this growth, with overnight stays (excluding local accommodation with fewer than 10 beds) increasing by 1.1% in October 2024, compared to 0.7% in September. Additionally, total revenues from tourist accommodation also saw a rise of 14.1%, surpassing the 13.6% achieved in the previous month.

Electricity distribution, an indicator often associated with economic activity trends, rose by 0.5% in October 2024, following a 1.6% increase in the prior month.

Regarding diesel released for consumption, there was a 0.5% increase, reversing the 0.2% decline observed in September.

Analysing the ratio of companies incorporated to those dissolved, 3.1 new companies were incorporated for every company dissolved in October 2024, slightly below the ratio of 3.2 observed in the previous month.

Qualitative Indicators

Confidence indicators available for October 2024, compared to the previous month, show a slight increase in the manufacturing sector. Conversely, declines were observed in the construction and public works, retail, and services sectors.

Private Consumption

One of the indicators reflecting private consumption trends is the number of transactions in the SIBS network using cards issued by national banks. Analysing the total withdrawals from ATMs and purchases made with national cards at POS terminals, there was a 7.6% growth in October 2024, exceeding the 5.9% observed in the previous month.

Gasoline released for consumption slightly decelerated, recording a 9.2% increase in October 2024, compared to 9.6% in September of the same year. Conversely, purchases of new passenger cars by residents fell by 7.5%, contrasting with the 4.7% growth recorded in the prior month.

Additionally, the balance of consumer loans granted to households and non-profit institutions serving households decreased to 6.2% in October 2024, from 6.3% in September.

Investment

Investment indicators for October 2024 are divided into two groups. Among those showing positive signals, light cargo vehicle sales grew by 27.3% (up from 23.2% in the previous month); housing bank appraisals increased by 14.1% (compared to 13.8% in September); the balance of loans granted to households for housing rose by 2.1% (up from 1.8% in the prior month); and cement sales recorded a growth of 15.2%, following a 5.1% rise in September 2024.

On the other hand, some indicators registered declines. These include the balance of loans granted to non-financial corporations, which decreased by 5.3% (following a 6.5% drop in September 2024), and the number of building permits, which fell by 8.1%, compared to -16.5% in the previous month.

External Demand

Although foreign trade accounts for only a small portion of the Region's total trade (most of which is with mainland Portugal), it is noteworthy that both exports (20.3% in October; 32.8% in September) and imports of goods increased in October 2024 (8.7%; 5.8% in September).

The movement of goods in ports, an indicator providing a broader perspective of external trade dynamics, recorded a 6.9% increase, below the 10.2% observed in September.

Other indicators in October 2024 reveal similar trends. Passenger movements at airports accelerated by 3.3%, slightly below the 3.4% growth recorded in the previous month. This trend aligns with the growth in ATM withdrawals and card payments at POS terminals by international cardholders, which rose by 16.1%, compared to 17.3% in September.

Labour Market

Data from employment authorities at both the national and regional levels show that, in October 2024, there were increases in job offers (11.9%), in the number of unemployed persons registered during the month (7.3%) and in job applications (7.5%).

Prices

In October 2024, the year-on-year inflation rate stood at 3.2%, down from 3.8% in the prior month. Inflation was lower for goods (2.0%) and higher for services (4.8%). The underlying inflation, which excludes unprocessed food and energy products, stood at 3.3%, down from 4.5% in the previous September.

For more information, visit:

• RIEA - In Focus (Portuguese only)

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