In 2006 the regional economy displayed considerable signs of recovery, mainly as a result of the surge in export demand.
In manufacturing, sales grew at a faster pace than in 2005, buoyed by the strong performance of metals and metal products, engineering, and textiles and clothing. Gross fixed investment increased, although less than in the previous year.
The construction industry continued to expand thanks to the performance of residential building and the improvement in non-residential construction. By contrast, public works made a negative contribution. The rise in property prices came to a halt.
Retail and wholesale trade recorded similar results to the previous year, with signs of recovery in small outlets. Tourism increased in terms both of tourist flows from within the country and of foreign visitors.
The number of persons in work increased, particularly women. The unemployment rate fell to the lowest level of the last ten years. Firms reduced their use of the Wage Equalization Fund.
Lending to residents in the region expanded at a faster pace than in 2005, buoyed by credit for real-estate operations. Consumer credit continued to rise. The growth in lending to the corporate sector was concentrated in the medium and long-term segment and was more marked among medium and large-sized firms.
Supply conditions remained easy. Interest rates on loans rose less than official rates. The quality of credit deteriorated slightly for both households and firms. In industry this reflected a worsening of difficulties for some firms.
Savers in Umbria continued to invest in highly liquid, low-risk instruments. Bank fund-raising grew faster than in the previous year, buoyed by an increase in placements of bonds and demand for current accounts and repos. Investments in government securities and corporate bonds increased.
There was a further increase in the number of bank branches in the region despite more widespread use of telephone and internet banking.
