Economic developments in CampaniaUpdate

The slow recovery in output continued in the first two quarters of 2007 but was insufficient to foster growth in investment or employment. In industry, exports increased, particularly in the case of large firms. Household consumption was slack and tourism stagnated, with negative repercussions on private services. Employment fell, above all among the female workforce and in the service sector. The inactivity rate for the working-age population increased further. Bank lending continued to expand rapidly compared with the national average, despite a slowdown in loans to both the corporate sector and households. Between June 2006 and June 2007 the cost of money rose by less than 1 percentage point; the differential with respect to the national average showed virtually no change. Bank funding slowed, mainly owing to a downturn in funds from the household sector.