According to VenetoCongiuntura survey on the fourth quarter 2007, the output of manufacturing enterprises held steady with a +1.9%, and so did turnover (+2.5%). Employment grew by 0.6%. Small enterprises were recovering, while medium-sized and large companies held firm.

Veneto manufacturing sector closed the year 2007 in a strong position.

VenetoCongiuntura survey by the Centro Studi of Unioncamere Veneto was conducted in collaboration with Confartigianato Veneto on a sample of nearly 2,000 enterprises having at least 2 employees: it pointed out that industrial production in the fourth quarter of 2007 registered an increase of 1.9%.

Turnover also maintained its growing trend, although to a smaller extent, and marked an increase of 2.5%.

This positive trend concerning production goes along with domestic demand growing higher than foreign demand: internal orders grew by 3%, external ones by 2.4%. Exports are booming too: in the last months of 2007, they registered an increase of 3.4%. Employment also performed positively, growing by 0.6%.

Micro-enterprises (that is, enterprises with no more than 9 employees) are on the rise, while small and medium-sized enterprises' (with more than 10 employees) growth rate is slowing down.

Micro-enterprises
The positive trend of the last three months of the year, as for the manufacturing sector, is a consequence of micro-enterprises’ recovery.

Compared to the same period in 2006, the production index rose by 1.4%, and recovered also on a short-term economic basis (reached a -0.5% starting from the -1.5% of the third quarter). Also turnover performed better than in the past, as it recorded an increase of 1.3% on an annual basis.

Small and medium-sized enterprises
Enterprises with at least 10 employees performed even better, in step with the previous quarter but slightly less satisfactory than the average of the first six months. In the fourth quarter of 2007, production grew by 1.9% on a trend basis, mainly thanks to small enterprises (10 to 49 employees), which contributed +2%.

Sectors
Compared to the corresponding period in 2006, industrial production index marked positive variations in the following sectors: rubber and plastics (+5.5%), electrical and electronic machinery (+4.1%), paper, printing and publishing (+3%).

Machine tools sector experienced a limited increase (+1.2%), and other manufacturing enterprises (mainly firms of the gold jewellery sector) that registered -2.8%.

Provinces
From a territorial point of view, the main contribution to growth was given by the provinces of Rovigo and Padua, which registered a positive variation of 3.6%, followed by Belluno (+2.4%). Verona reached less positive results, not more than 0.3%.

Other short-term economic indicators
 
TURNOVER
In the period between October and December 2007, the turnover index grew by 2.5% compared to the same period in 2006, but even so, it underlined a more limited growth rate with respect to that of the first nine months of the year. The most remarkable trend variations concerned the following sectors: rubber and plastics (+5.6%), food industry (+5%), metal production (+4.1%) and wood-furniture (+3.8%).

More specifically, the turnover index registered the most remarkable increment in large companies (more than 250 employees) with a 3.8% increase, followed by small ones (10 to 49 employees) with a +2.6%, and medium-sized enterprises (50 to 249 employees), growing by 2.2%. Micro-enterprises, which rose by 1.3%, performed well too.

ORDERS
Domestic demand showed a positive reversal in its trend, as opposed to less positive results as for foreign demand.
On an annual basis, internal orders rose by 3%, driven by the machine tools sector (+11.7%), metal production (+4.2%) and food industry (+3.3%).
Good performances in enterprises of all sizes.
The best in this field were medium-sized enterprises, marking a +4.4%, and large companies (+3.7%); micro-enterprises contributed to domestic demand recovery with an increase of 1.6%.
As for foreign orders, they suffered a downturn with respect to the first nine months, and registered a +2.4% on a trend basis.
The highest increases were shown by food industry with +18.1% and paper, printing and publishing (+10.8%). The wood-furniture sector also supported foreign demand growth with a more modest 6.8%.

Micro-enterprises are the ones to drive foreign demand, with +7.9%, followed by small enterprises (+4.6%) as opposed to a slight slowdown as for medium-sized and large companies, respectively +1.7% and +1.1%.

 
EXPORT
Compared to the same quarter one year ago, manufacturing enterprises having at least 10 employees registered an increase of 3.4%, which can be mainly traced back to the foreign sales increase thanks to small enterprises (10 to 49 employees) that recorded +4.5%. Medium-sized and large enterprises didn’t contribute to a significant extent, since they stopped at +3%, half the growth rate of the first nine months.
The growth in the exports of food industry was particularly significant, because it marked +18.9%, and also electrical and electronic machinery (+10%) and rubber and plastics (+7%).

EMPLOYMENT
Employment dynamics are getting stronger, and it registered a 0.6 per cent increase on a trend basis, thanks to the contribution of micro-enterprises, whose number of employees rose by 1.3%.

Medium-sized and large companies also helped, marking respectively +1.2% and +1.6%, while small enterprises registered a slight downturn (-0.5%).
Considering the different sectors, employment grew the most as for machine tools (+2.7%), rubber and plastics (+2.6%) and food (+1.8%). Textiles, clothing and footwear suffered a new slowdown, closing the quarter with a negative -2.3% as for employment; the remaining manufacturing industries, which also include the gold jewellery sector, experienced a drop of 2.6%.
Non-EU workers are on the rise: on an annual basis, this side of employment registered a +2.1% thanks to a significant increase (equal to 20%) in foreign manpower within micro-enterprises.

FORECASTS
Entrepreneurs’ forecasts on the first six months of the year remain doubtful. Compared with assessments over the previous quarter, the balance between increase expectations and decrease estimates suffered a further reduction involving all its main indicators.
With regard to production, the indicator reached the zero (last quarter it was +3.3%), while turnover indicator suffered a halving (from 6.6% to 3.3%). The most optimistic results refer once again to foreign orders, which mark a balance of +6.6%, while confidence on employment growth rise further more (+4.3%).

DECLARATION
Federico Tessari, president of Unioncamere Veneto:
"Veneto manufacturing enterprises closed the year with positive results, unlike the rest of Italy.
The  outcomes for the fourth quarter of 2007 underlined a recovery among micro-enterprises, which marked +1.4% as for production and +1.3% in turnover. Medium-sized and large companies also performed well, even if their results were inferior to those of the first nine months of the year: this trend is probably due to a period of settlement rather than a slowdown.

The picture outlined by VenetoCongiuntura survey shows that regional industry is positively reacting to negative signals coming from the main advanced economies, and it keeps marking results that are in line with the North-East of Italy, and higher than the rest of the country: as a matter of fact, according to data by Unioncamere - Italy, the fourth quarter of 2007 saw a growth equal to 2.2% in the North-East, and 0.9% in Italy.

Veneto maintains a strong position on foreign markets, but it is necessary to kick-start internal market. I’m confident of 2008 performance. I don’t believe there will be recession nor stagnation, but maybe only a difficult economic period, which I’m sure Veneto enterprises will face with the usual optimism and strength."

Consult the tables

Veneto. Main short-term economic indicators trend (percentage change on same quarter in previous year) - 4th quarter 2007.

Veneto. Industrial production trend (percentage change on same quarter in previous year, moving average) – years 2004-2007.

Veneto. Industrial production forecasts – years 2004-2007.