USA

Commentary: The U.S. economy remained resilient but showed clearer signs of moderation. GDP growth slowed to 1.5% in the second quarter, while consumer spending remained supportive despite July retail sales falling 0.6%, suggesting households were becoming more cautious. The labour market weakened further, with payrolls falling by 23,000 in July and the unemployment rate edging down to 4.1%, reinforcing a low hire environment and increasing concerns over the sustainability of growth. Inflation showed tentative signs of easing as the FED maintained rates amid uncertainty over inflation and weakening employment. Persistent tensions in the Middle East and volatile oil prices continued to complicate the general outlook. Markets remained positive, with U.S. equities reaching further record highs through August. 

Europe & UK

Commentary: The euro area economy showed greater resilience than expected, with GDP expanding by 0.4% in the second quarter, supported by stronger consumer confidence, government spending and investment. Inflation notched up to 2.9% through July as higher energy prices pushed headline inflation higher, while core inflation also edged higher and services price pressures remained persistent. The ECB kept rates unchanged in July, maintaining a cautious, data-dependent stance as policymakers assessed the uncertain impact of elevated energy prices and renewed Middle East tensions on inflation and growth. Markets remained broadly resilient, supported by stronger-than-expected economic data and robust corporate earnings, although rising oil prices and geopolitical tensions triggered renewed volatility toward mid-August. The Eurostoxx 50 is now up by 12.9% YTD.

Malta

Commentary: Malta continued to outperform most euro area economies, with the latest indicators pointing to solid economic momentum supported by resilient domestic demand, exceptionally strong tourism activity and a robust property market. The labour market remained tight, although the seasonally adjusted unemployment rate edged up to 3.5% in June, indicating some gradual normalisation in labour-market conditions. Inflation remained contained at 2.1% in July, supported by government measures and relatively moderate energy pressures. Local banks reported their H1 earnings, with APS Bank reporting record profits through the first half of 2026.  Financial markets remained positive, with the Maltex now up 9.6% YTD.