Economic developments in MarcheUpdate

The economic expansion in Le Marche continued throughout the first three quarters of 2007, but at a progressively slower pace with respect to the end of 2006. In manufacturing, growth was more robust in engineering, wood and furniture than in the footwear industry. Confidence levels remained positive regarding the end of the year, according to the companies surveyed by the Bank of Italy, despite increasing signs of a slowing of demand. In the first half of 2007, production in the building industry remained unchanged at constant prices, despite historically high values. Overall, employment held stable. Bank loans slowed slightly in June owing to the weak performance of the leading branches of manufacturing and the slowdown in mortgages granted to households for home purchase. Banks’ sources of funds expanded at a similar rate to that of 2006, mainly thanks to the contribution of current accounts and repos. Households further increased their holdings of government bonds.