The Bank of Italy published an economic update for Puglia showing that regional output grew 1% in the first half of 2026 compared with the same period of 2025, strengthening from the previous year's average. Foreign demand and public investment supported activity, while bank lending accelerated. Available indicators nevertheless point to weaker economic conditions in the second half of 2026 as higher energy costs compress business margins and household purchasing power.
Exports rose 15.2% at current prices in the first half, led by transport equipment, but industrial growth remained modest and uncertainty persisted over the Taranto steelworks. Construction benefited particularly from public works financed through the National Recovery and Resilience Plan, while tourism supported a limited expansion in services. Employment increased 0.6% in the first half, although authorized hours under wage supplementation schemes and solidarity funds rose about 40%, reflecting continuing business difficulties, particularly in metallurgy. Household purchasing power increased only 0.6% over the same period and declined slightly in the second quarter as inflation accelerated. Regional inflation reached 4.3% in September, compared with 2% in December 2025.
Annual growth in bank lending to the nonfinancial private sector reached 3.4% in June, up from 2.6% in December 2025. Business lending increased 3.7%, but loans to smaller firms contracted 3.4%, continuing the decline observed over the preceding three years. Banks reported some easing in business lending conditions through lower average spreads and collateral requirements. Consumer credit from banks and finance companies accelerated to 5% annual growth, while housing mortgage growth slowed to 3.5%. Preliminary figures indicate that overall bank lending growth eased to 2.9% in August. Credit quality remained broadly stable, with impaired loans representing 4.1% of gross bank exposures in June, although business credit quality deteriorated.