The signs of recovery in the final months of last year were partially confirmed in the first half of 2006. In industry, the positive performance of the steel industry was accompanied by an improvement in the auto components sector; the situation remains difficult in engineering, with adverse effects on overall employment.
The forecasts of businesses for the second half of the year and the opening months of 2007 are uncertain as to the strength of recovery. Activity in the construction sector continued to expand, benefiting again from tax incentives for renovation work.
In services, household expenditure rose and tourist flows recorded an increase ascribable mainly to the foreign component. Bank lending grew again, boosted by consumer households’ demand for credit for the purchase of houses and other durable goods. Loan quality improved, thanks in part to the positive results in some sectors of industry. Overall, savers’ portfolios remained weighted towards liquid instruments and characterized by low risk.
