Lombardy grows around 1 percent in first half of 2026
Lombardy's economy grew around 1 percent in the first half of 2026, matching Italy's average, according to the Bank of Italy. Consumption and exports supported activity, while higher energy costs compressed firms' profit margins.
Technology and tourism sustain growth
Manufacturing output increased 2.3 percent year on year in the first half of 2026, supported by machinery, electronics and aerospace demand.
Services expanded, with information technology and business services contributing; Winter Olympics visitors supported tourism.
Construction activity stabilized, with public works under the National Recovery and Resilience Plan sustaining output.
Goods exports rose 1.7 percent in real terms and 3.5 percent nominally, but firms lost market share.
Nominal exports to the European Union increased 4.5 percent, against 2.3 percent elsewhere.
Middle East conflict and navigation difficulties in the Strait of Hormuz raised energy costs.
Nevertheless, 80 percent of industrial and services firms anticipated a profit for 2026.
Credit expands as inflation returns
Business bank lending grew 3.9 percent annually in August 2026, up from 2.1 percent in December 2025.
New investment loans cost 4.5 percent in Q2, an increase of 16 basis points.
First-half employment rose 1.1 percent, or over 50,000 people; unemployment fell to 2.8 percent.
Real household income increased 0.7 percent, while consumption rose 1.3 percent.
September inflation reached 3.9 percent, driven by housing and transport.
Household borrowing grew 4.0 percent annually in June, including 6.2 percent growth in consumer credit.
Lower payments carry rate risk
Variable-rate mortgages accounted for 17 percent of new lending in the first half of 2026, up 10 percentage points annually.
Their Q2 rate was 3.3 percent, against 3.7 percent for fixed-rate loans.
The Bank of Italy notes that more households chose lower initial repayments at the cost of greater exposure to rising rates.