In September 2022
Regional economy grew, albeit slowing down
The Regional Indicator Economic Activity Indicator (RIEA) shows that in September 2022 the regional economy continued to grow, but at a slower pace, when compared to the previous month.
As mentioned in the first release of RIEA, in October 2017, its purpose is “to signal the behaviour of economic activity, namely concerning its direction and magnitude of fluctuations: whether it is in the positive or negative ground, accelerations, decelerations and the identification of turning points”. Therefore, its quantitative value assumes secondary importance, not being a substitute for the volume change of the Gross Domestic Product - determined with a more varied and complete set of statistical information - although there is a strong correlation between the two variables.
It should also be noted that RIEA is subject to data revision whenever the final information on the Regional Accounts becomes available. In this release, RIEA was recalculated, which resulted in a revision of the previously released figures and in less pronounced changes of the RIEA in the recent past.
It should also be noted that for 2021, as in previous years, the RIEA was in line with the real change of GDP for this year.
Monthly Economic Survey - The economic situation of the Autonomous Region of Madeira in September 2022 from 6 topics
DREM continues the brief analysis of the main short-term indicators, which started in December 2021. It should be noted that many of the indicators for September 2022 show a deceleration in growth, which is due to the progressive normalization in economic activity that took place in the same period of the previous year.
Economic activity
As mentioned above, RIEA shows that, in September 2022, the regional economic activity maintained its positive growth path, albeit at a slower pace than in the previous month.
The recovery of the tourism sector was an important contributor to this performance, with overnight stays (excluding local accommodation under 10 beds) increasing by 34.4% in that month, however, below the 64.2% of August.
Electricity distribution – an indicator closely associated with the performance of economic activity – although growing by 2.2% in September 2022, also decelerated in relation to the previous month (+4.0%). On the negative ground, the diesel released for consumption decreased by 4.9%, which compares with the -1.4% recorded the last August, continuing a trend that began last April, first of deceleration and from August, of decline.
When analysing the ratio of formed and dissolved companies, it is noted that in September 2022, for each company dissolved in the Region, 1.5 new companies were created, the same value recorded in the previous month and very close to the levels of the first three months of that year.
Private consumption
One of the indicators that can be related to private consumption is the operations on the SIBS network with the cards issued by the national banks. Analysing the amounts of withdrawals and purchases through automatic payment terminals (APT) using this type of card, there is a growth of 11.3% in September 2022, slightly below (11.6%) the previous month, confirming the deceleration trend seen since last May.
In contrast to diesel, the gasoline released for consumption accelerated, rising by 8.3% year-on-year in September (7.1% in August 2022).
The sale of new light passenger vehicles slowed down again in the month in reference, although it grew by 5.4% year-on-year (+18.3% in August).
Investment
Most of the investment indicators are slowing down in September 2022; building permits (+7.9%; +29.9% in August), bank appraisals on housing (+11.8%; +12.5% in the previous month), and home loans (+3.2%; +3.6% in August). In the month under review, cement sales fell by 5.9% (+0.4% in August) while sales of new light cargo vehicles went down by 66.9%.
External demand
Although trade with foreign countries represents only a small part of the Region's total trade (the majority of it is with the mainland), it should be noted that both exports (+44.0%) and imports of goods (+18.6%) showed the same trend as the movement of goods in ports (+9.2%; +12.6% in the previous month), the most comprehensive indicator of the dynamism of trade with foreign countries. Among the indicators more related to the export of services, the growth of passengers in airports (+49.2%; +72.7% in the previous month) is in line with withdrawals and purchases, with international cards, through automatic payment terminals (ATP), +42.8% in September 2022 (+62.7% in the previous month).
Labour Market
Data from the organisations responsible for employment in the country and the Region show, in September 2022, a decrease in job offers (-6.8%) and an increase both in job applications (+7.1%) and registered unemployed during the month (+8.0%).
Prices
In September 2022, the year-on-year inflation rate, which stood at 8.0%, decelerated compared to the previous month, being sharper for goods (+8.5%) than for services (+7.1%). The underlying inflation rate (which excludes unprocessed food and energy) was 7.4%.
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