The main cyclical indicators improved in Trentino-Alto Adige in the first half of 2006. Orders received by the region’s industries grew steadily, leading to an increase in production and a reduction in stocks of finished products. The opinions of the industrial companies polled in September by the Bank of Italy survey were also favourable concerning the outlook for the second half of the year and the first quarter of 2007.
Conditions remained positive both in construction and in the tourist sector, which recorded a slight further increase in overnight stays. Household consumption began to grow again, after two years of holding broadly stable. Expanding foreign demand caused an acceleration in exports, whose rate of growth is nonetheless still lower than the national average.
The further increase in employment concerned males, while female employment fell. Bank lending continued to increase at a high rate; reversing the trend under way since 2004, lending to firms grew faster than credit to households, mainly as a result of the contribution of loans to real-estate and transport companies. The flow of loans reclassified as bad debts in the twelve months diminished, bringing loan quality back up to better levels than the national average.
