Economic developments in MoliseUpdate

The Molise economy continued to pick up in the first six months of the year, following on from the second half of 2006. Industrial production returned to growth, despite some signs of a slackening in the third quarter. Capital accumulation, which had resumed in 2006, proceeded at a more robust rate throughout the year. The construction sector continued to perform well. The increase in employment affected only the female labour force, the rate of unemployment remained at historically modest levels, and support measures by the Wage Equalization Fund (in case of a temporary excess of workers) were considerably reduced. There was again a strong growth in bank lending, especially medium and long-term loans. Credit quality deteriorated slightly, with the increase in new bad debts coming primarily from manufacturing.