Production is progressing slowly in Lombardy

Overall, the transport sector was among those with the best performance during the period under review, confirming the positive trend already observed in the previous survey. The chemical industry recorded the highest growth in turnover during the quarter (+9.3 per cent year-on-year). By contrast, the sectors experiencing the greatest difficulties in the second quarter are the clothing and wood and furniture sectors. The clothing sector, in particular, is suffering from a sharp rise in raw material prices, which, across the entire sample, have risen by over 11 per cent, marking a significant increase compared with the previous figure (+8.4 per cent)

The overall resilience of the industrial sector – with progress recorded in ten of the thirteen sectors monitored – is in any case also confirmed when taking into account the expectations of industrial firms in Lombardy, which point to a less pessimistic outlook, particularly with regard to production, turnover and foreign demand, whilst expectations regarding employment are also showing further improvement. For all the indicators considered (with the exception of domestic demand), the balance between optimists and pessimists favours the former, with figures on average better than in the previous survey.

The main concerns for businesses (which are also shared by craftspeople) relate to a possible further rise in energy and raw material costs, and a further escalation of geopolitical tensions.

“With production remaining flat,” explains Giuseppe Pasini, president of Confindustria Lombardia – it is exports and turnover that are keeping businesses afloat, with the latter being affected by rising costs: high raw material prices, the ongoing conflict in the Middle East and the unresolved energy crisis are keeping Lombardy’s businesses under pressure and in a state of uncertainty. Whilst we are witnessing the end of the National Recovery and Resilience Plan (PNRR) and a new tightening of bank credit to businesses, no serious or structural industrial policy proposals are emerging at either national or EU level.”

“The manufacturing sector in Lombardy,” comments Gian Domenico Auricchio, President of Unioncamere Lombardia, “continues to grow, not because the sources of uncertainty have disappeared, but because in recent years it has strengthened its ability to compete. This achievement stems from the quality of the businesses, the strength of the supply chains and their openness to international markets.”

“Lombardy’s strength lies in its regions and the businesses that represent them,” said Guido Guidesi, Councillor for Economic Development for the Lombardy Region. “These figures show that, even in a challenging global climate, our manufacturing sector continues to grow and compete. This demonstrates the ability of Lombardy’s entrepreneurs to tackle uncertainty by investing, innovating and opening up to new markets. From Brescia, we are also launching a roadshow to take these figures out into the local areas and provide a first-hand account of a Lombardy that manufactures, exports and creates jobs. We want to continue supporting this capacity by strengthening the competitiveness of businesses and supply chains.”