In the first three quarters of the year the available indicators show a strengthening of the cyclical recovery that began in 2005. Manufacturing industry recorded an increase in orders, sales and, to a lesser extent, production. Exports growth was higher than in 2005, but below the national average. In construction, there was further expansion in residential building, while activity in the public works sector is expected to decline.
Among services, after two years of contraction the tourist sector recorded an increase in arrivals and overnight stays, while distribution experienced further stagnation. Against the background of a moderate rise in interest rates, bank lending accelerated, reflecting the broadly based expansion of loans to business. The increase in consumer households’ debt was in line with that of the previous year. The ratio of new bad debts to credit disbursed rose for firms in the service and construction sectors. Banks’ fund-raising accelerated, especially in the bond component, in connection with a slight increase in the interest rates offered.
