Export, only instrumental mechanics in Milan and Monza grow

In the general decline in exports of Lombardy's industrial districts in the first quarter of the year, the performance of the Milan and Monza mechanical engineering district shines, the only one in positive territory out of the 23 monitored, with a 6.6% jump (+€93 million) compared to the stperiod of 2023, thanks to growth in China, Turkey and, above all, Mexico. This is what emerges from Intesa Sanpaolo's latest Lombardy District Monitor. Exports, at current prices, showed a drop of 8.3% compared to the first quarter of 2023, larger than the national result that stopped at -1.1%.

In the area, among the most conspicuous declines was that of the metalworking sector (-7.7%: -EUR 414 million), weighed down by the slowdown in the Brescia metal district (-17.6%: -EUR 267 million), which is suffering from the return of prices from the high levels of the same period in 2023. The home system is retreating (-6.7%: -€125 million). The fashion sector is shrinking (-16.8%: -163 million), the rubber and plastic districts (-7.8%: -49 million), and the agro-food industry (-4.4%: -21 million). And as far as destinations are concerned, exports of the Lombard districts recorded the largest drop (-10.7%, at current prices) to mature markets. In particular, the lower sales of metalworking to Germany, the main outlet, weighed heavily.

On the front of Lombardy's technology clusters, after a growing 2023 (+6.2%), exports in the first quarter remained positive: +7.3% at current prices (+€287 million) driven by aerospace (+145.6%: +€326 million, a flow influenced by multi-year orders) with increases also for the ICT pole in Milan and Monza (+0.3%: +€4 million) and the biomedical pole in Milan (+1%: +€2 million), while pharmaceuticals slowed down (-2.1%: -€46 million). Among the sector's destination markets, flows to Greece (performance more than doubled in the first quarter: +€68 million), Malaysia (+99.4%: +€49 million) and Poland (+94.1%: +€47 million) improved.

"Despite the contraction of exports in the first three months of this year, the Lombard districts continue to be competitive thanks to their strengths such as flexibility, propensity for innovation and product quality," commented Pierluigi Monceri, Intesa Sanpaolo's Milan, Monza and Brianza regional director. "Inflation is coming back and rates, more slowly, have started their descent. The effects on consumption and international trade have had repercussions on manufacturing and the geopolitical context has not helped, but it is precisely in this context that the districts have shown their resilience."

Lombardy North Regional Director Daniele Pastore points out: 'Even in the districts that have experienced the most difficulties, there are flexible companies that have continued to invest, move markets, diversify, customise products, and offer that service component that other countries cannot. Lombardy's companies are investing again, and we are ready to support them by making more than EUR 30 billion available through our Your Future is Our Business programme to accelerate investments in sustainable transition, internationalisation, and digital security in support of Transition 5.0".