Economic activity in Lombardy has shown signs of recovery in 2006.
Production has grown in nearly every branch of industry, most notably in steel, chemicals and engineering; among the traditional sectors, the contraction in textiles has come to a halt. Activity has continued to expand in the construction industry, albeit at a slower pace, and has ceased to contract in services.
In the first half of 2006 exports at current value rose, especially for the region’s main product sectors. Employment increased, especially female and payroll employment, and the unemployment rate fell. There was an acceleration in bank lending in the first half of 2006, due mainly to the expansion of the short-term component.
Lending to manufacturing firms returned to growth, in line with the signs of that sector’s recovery. By contrast, the rate of increase in lending to consumer households declined, owing partly to securitizations. Loan quality deteriorated slightly for construction and service firms and, to a lesser extent, for households.
Banks’ fund-raising from resident customers grew. Securities belonging to the region’s households held for custody by banks increased. By contrast, investment funds recorded a significant net outflow of funds in the first nine months of the year.
