The Bank of Italy has published an economic update estimating that Lombardy’s economy grew by around 1% in the first half of 2026, in line with the national average. Stronger consumption and exports supported activity, while higher energy prices squeezed business margins and limited gains in household purchasing power. Lending to businesses and households continued to expand.
Manufacturing output increased 2.3% year on year in the first half, supported by machinery, electronics and aerospace. Goods exports rose 1.7% in real terms, although exporters lost market share. Business and information technology services contributed to growth, while tourism benefited from the Winter Olympics. Construction activity stabilized after a prolonged expansion. Higher energy costs linked to the Middle East conflict and navigation difficulties in the Strait of Hormuz were only partly passed on to customers, compressing profit margins. Annual growth in bank lending to businesses accelerated to 3.9% in August from 2.1% in December 2025, concentrated among larger companies. Gross nonperforming loans fell to 3.4% of business lending in June from 3.7% at the end of 2025.
Employment increased 1.1% year on year in the first half, and unemployment declined to 2.8%. Household consumption grew 1.3% in real terms, outpacing the 0.7% increase in real disposable income. Inflation reached 3.9% in September, driven mainly by housing and transport costs. Household borrowing increased 4% in the year to June, including growth of 3.6% in housing loans and 6.2% in consumer credit. Variable rate mortgages accounted for 17% of new mortgages in the first half, up 10 percentage points from a year earlier, increasing borrowers’ exposure to interest rate rises.