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CONTINUED FROM PAGE 1 Expectations for input prices also continued to ease. While 66% of businesses still anticipate an increase in the prices of essen- tial products and services over the next six months, this marks a decline compared to September 2024. This trend is also reflected in firms' expectations for their own selling prices The survey was conducted dur- ing 6-month period from Sep- tember 2024 and March 2025. Business conditions and expectations According to the survey, 30% of firms reported improved busi- ness conditions, up from 20% in the previous period, while only 16% noted a deterioration, down from 20%. The secondary sector, which includes manufacturing and construction, and the services sector, particularly transpor- tation and storage, posted net positive balances of 17% and 15% respectively. However, this overall optimism was tempered by negative sentiment in the ac- commodation and food services sector, where only 22% reported improvements and 33% experi- enced worsening conditions, re- sulting in a net negative balance of 11%. The share of firms report- ing stable conditions declined slightly, from 60% in the previ- ous survey to 54%. Workforce availability remains a pressing concern, with 53% of firms citing a shortage of suitable employees as a key challenge, up from 46% in September 2024. This issue was especially pro- nounced in the construction sector (70%) and tourism-relat- ed industries (65%). Cost pres- sures were identified by 36% of businesses, though this figure continues to follow a downward trend and now stands at nearly half the level reported in Sep- tember 2023. The transportation (67%), con- struction (60%), and accommo- dation and food services (56%) sectors were the most affected by cost concerns. Meanwhile, con- cerns about slowing sales were predominantly reported in the construction sector, in line with past findings. Looking ahead, the business outlook is markedly more opti- mistic. 41% of firms said they expect improved business activity over the next six months, compared to just 20% in the previous round. The share of firms ex- pecting conditions to worsen fell sharply to 9%, from 31% in Sep- tember 2024. The services sector recorded the strongest sentiment, with businesses in accommodation and food services reporting a particularly high net positive balance of 89%. Employment The survey shows that 58% of businesses plan to increase their workforce in the next six months, an 18-point rise from September 2024 and 3 points higher than the figure from March 2024. This indicates sustained labour demand, especially in manufac- turing, financial and insurance activities, and tourism-related sectors such as transportation, storage, and accommodation and food services. The most sought-after skills include technical competencies involving tools and machinery, as well as soft skills such as com- munication and teamwork. De- mand for computer-related and construction-specific skills also persists, albeit to a lesser extent. These skill requirements are in line with trends reported in the previous survey round. Investment Investment sentiment is also trending upward, with 55% of businesses indicating plans to invest, up from 48% in Septem- ber 2024. Firms in the manufacturing and industrial sectors, including construction, were among the most likely to signal forthcoming investments, highlighting confi- dence in growth and expansion in Gozo's secondary sector. A focus on wellbeing The survey also sheds light on how Gozitan businesses are ap- proaching employee wellbeing. The most common initiatives focus on improving work flexi- bility and supporting work-life balance, reflecting a shift to- wards more adaptable workplace practices. Additionally, 24% of firms re- ported offering career develop- ment and skills enhancement op- portunities, signalling a broader understanding of wellbeing that includes professional growth and long-term aspirations. However, mental health re- mains a relatively under-ad- dressed area. Only 14% of busi- nesses reported offering any form of mental health support, suggesting that while wellbe- ing is gaining importance, sig- nificant gaps still exist in how comprehensively it is being ad- dressed. 4 gozotoday | FRIDAY • 6 JUNE 2025 NEWS More than half of businesses anticipate increase in prices of essential products and services