The signs of recovery recorded in the final part of 2005 strengthened in the first nine months of this year; the Turin Winter Olympics contributed to this. In industry, the growth in orders received by the regions’ firms got a significant boost from foreign markets; the improvement extended to the auto sector, where the Fiat Group enjoyed a recovery in sales and market shares in Italy and Europe. The expansion of industrial sales and production appears to have been accompanied by an improvement in unit profit margins, which had deteriorated sharply in the recent recession. Investment also picked up.
Firms expect the positive phase to continue in the coming months. By contrast, the expansionary stimulus coming from the construction sector appears to be diminishing. Employment continued to grow, thanks mainly to the contribution of the service sector. Household spending increased by more than the national average and households increased their recourse to mortgage loans and consumer credit. Lending to firms decelerated in the construction industry and contracted less sharply in the manufacturing sector. Loan quality began to improve again.
