In 2006 there were positive signs coming from the economy of Molise, although not in all sectors. The recovery in export demand, which occurred throughout the country, did not extend to the region's manufacturing industry, which produces mainly traditional goods. Production levels were low on average, although a gradual recovery took place in the second half of the year and the early months of 2007. Output continued to increase in the construction industry, but with signs of a slowdown in private residential building. The retail and wholesale trade benefited from an upturn in demand; the increase in purchases of durable goods was fostered by the wide availability of consumer credit, particularly in large retail outlets.
Employment rose by 2.5 per cent, following the 2.1 per cent decline of 2005. The number of persons in work increased in the service sector, in agriculture, and to a smaller extent in construction; by contrast it declined in the rest of industry. The growth concerned both payroll and non-payroll employees and was largest among women. The unemployment rate was virtually stationary compared with the previous year, with a rise in both the number of job-seekers and in the participation rates.
Bank lending increased at a faster pace than in the previous year. Short-term credit began to expand once more, particularly in the building industry. Medium and long-term lending continued to grow at a rapid pace despite the slowdown in households' mortgage demand for home purchases. There was a slight deterioration in loan quality, although the ratio of adjusted new bad debts to total loans remained lower than in the other regions of southern Italy.
